Computer Support Blog

Traditional television service, like any other service, has both positive and negative attributes.   Lately, though, it can be difficult to find the benefits of traditional broadcast television service when the detractions to it are so easy to spot (like weather-related outages).  Even cable television no longer seems as impressive a service, especially when compared to emerging Internet-based television options. Users of Internet television services have discovered that they can pay a fraction of the price to subscribe to Hulu Plus or HBO Go and get a more customized service.

Netflix, however, sees potential in the cable and satellite providers that many others do not see. The video streaming company is currently attempting to make a deal with major cable and satellite television providers to offer its services to their customers. The details of the partnership negotiations have not yet been released, but if a partnership occurs, it will have interesting implications.

For cable and satellite providers to allow subscribers to purchase Netflix as they currently purchase premium channels, like HBO and Showtime, would require some changes to both services. Netflix currently requires an Internet connection; would subscribers to this service need to connect their television to their home network service? Would this hypothetical service work on older televisions that cannot hook up to the Internet? How would a cable or satellite provider deal with the need for Netflix subscribers to easily search for shows?

There are many possible problems with Netflix’s collaboration with cable television service providers. One issue is whether the subscription would transfer between services provided by Netflix. Netflix wants its users to be able to access its online services, but cable and satellite providers may decide not to allow current Netflix customers access.  Unless executives properly negotiate around that sort of issue, Netflix customers could lose some functionality of their Netflix service in a partnership with a cable television provider.

Google is currently attempting to implement a limited television service in Kansas City through its Fiber network. There are also rumors that Apple will soon be releasing an iTV, which would likely come with television service as well. These services, based on how Google and Apple currently operate, may be highly customizable where traditional television service is not.

In order to preemptively salvage their services, cable and satellite providers are talking with Netflix about providing video streaming service through their subscriptions. While there are many possible problems they will face along the way, if this deal pans out, it could change the way television service works. Television providers may learn a great deal about what customers really want from Netflix. In the end, that would only help them provide a more relevant service to customers and more effectively compete with other Internet streaming video services.

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