Not a Distribution Channel, or a Marketing Channel, but a television channel for Netflix.

Virgin Media, Inc., which provides television services in the United Kingdom, has agreed to a deal with Netflix to put the content-streaming company on their cable-box sets. Essentially, they are creating Netflix as a cable company. When this was reported, Netflix shares were trading at an all time high of $313, up a substantial amount from their previous high of $304 (Boorstin).

As I was reading this, the potential for Netflix to be featured as a “cable company” from other service providers around the world proposed an interesting question. Is Netflix no longer an internet-streaming company, or are they now a cable company that has the added benefit of being able to stream content online? If the latter turns to be true in the future as partnerships increase, it would potentially be a huge Point of Difference from other cable companies. Traditionally, NBC, TSN, Global, etc., have only been offered as television-based networks being provided to a consumer from a television service company. For example, here in Vancouver, Shaw and Telus are two examples of companies that provide the television service, while TSN and Global are the companies providing the content. With the added potential ability for Netflix subscribers to stream both original and third-party content both online and on a television set, Netflix’s subscriber base could see a huge increase. If this is the preferred direction of Netflix, it will be interesting to see how competing cable-companies will differentiate themselves from Netflix in attempts to still be relevant services.

Works Cited:

Boorstin, Julia. “Why Netflix is at a New All-Time High.” CNBC. NBCUniversal, 11 Sept. 2013. Web. 17 Oct. 2013.