Netflix is setting itself up for a long and protracted against some of its main competitors. The stakes are high and the winner will reap huge benefits. But can Netflix really expect that it can win this battle?
It?s Netflix against cable. Who?s gonna win?
Netflix has long been a thorn in the side of cable providers. It?s not hard to see why. Netflix gives consumers a cheaper option to their cable TV providers. And that?s what worries Big Cable. If there is an alternative to them, their business will suffer. Cable TV providers have done all that they can to slow down Netflix?s growth. But have they gone too far?
Netflix allows consumers to receive movies and TV shows through the mail. They also allow consumers to stream movies and TV shows through internet capable devices like computer, televisions and gaming consoles. Netflix?s monthly fee is dramatically less than that of almost all Pay TV providers. This gives consumers a less expensive entertainment option. But there are some drawbacks. Streaming content takes up internet bandwidth. That is where cable companies have found a way to fight Netflix.
Most cable TV providers are also internet service providers (ISPs). They like to bundle Pay TV and internet access and sell the package to consumers. Most providers have a cap on how much internet bandwidth a consumer can use in a given month. Once that limit is reached, a consumer usually experiences slower internet speeds. In extreme cases, the internet service provider stops a customer from using the service completely.
Netflix contends that cable companies and their ISPs are using data caps to keep consumers from using Netflix exclusively. Of course, the cable providers say that is not the case at all. They say that they are happy to provide internet access to consumers to use as they see fit to. Even those consumers that want to stream video from Netflix, Hulu or any other service. Netflix wants the U.S. government to make sure of that. They have asked a committee of the U.S. House of Representatives to make sure that Pay TV providers are not trying to keep consumers from bandwidth hogging video streaming.
Cable companies have a history of anticompetitive behavior. This wouldn?t be the first time that they have tried to keep someone from cutting into their very profitable businesses. Netflix has over 20 million subscribers and that number is expected to continue to grow. That growth could depend on Netflix?s ability to compete on a level playing field with Big Cable.
AaronMonopoli
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Source: http://www.worldtvpc.com/blog/can-netflix-fight-big-cable-companies-and-win/
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