Netflix CEO Reed Hastings has some advice for cable networks — how he would compete if he were a traditional cable network. He told the audience at the New York Tiimes DealBook Conference earlier this month that he would expand TV Everywhere, which lets subscribers access content via the Internet. Of course, that’s easier said than done.
Tell me more!
Time Warner pioneered TV Everywhere back when it was still a cable and entertainment company. It gave subscribers access to TBS and TNT content via streaming over the Internet in late 2009. In 2010, HBO started streaming its back catalog via HBO Go, and numerous other networks started to join in.
TV Everywhere has the potential to add real value to the traditionally bloated cable bundle. Instead of adding more channels that people don’t want to watch, cable can offer subscribers all the channels they want, wherever they want, whenever they want. That’s the Netflix model, but with newer, better, and more content.
Still, it’s unlikely networks will open up more of their content to the Internet until their hand is forced. That could come from cord cutting, but more likely from a decline in advertising rates as viewership drops. Until then, Netflix will reap the rewards as it attracts more viewer hours and continues to be able to buy up content from networks.