Quoted: Reed Hastings on the future of cable networks

“What we’ll see in the Internet is most cable networks will become Internet networks — we’ll still call ESPN a cable network, but it’ll be mostly delivered over the Internet in 10 or 20 years.”

Reed Hastings, Netflix CEO, tells Politico that entertainment providers will inevitably move to the Internet because of the flexibility, individualization and control it offers. But he still has a lot of convincing to do. Some worry or say that Netflix’s foray into original programming plus the cost of securing other content will be tough for the Los Gatos company. (Standard & Poor’s on Tuesday lowered its outlook on Netflix, saying it expects the company to have negative cash flow this year and the first half of next year because of costs related to original programming. Netflix shares fell nearly 1.5 percent Wednesday.) And even those who have teamed up with Netflix appear to need convincing. In a GQ article, for example, Peter Levinsohn, Fox’s head of digital development and the person who cut a deal to bring “Arrested Development” to Netflix after the show was canceled by the network, did not seem as enthused about the partnership as Hastings. “I’d be lying if I said I wouldn’t prefer if it were more, um, network-centric,” Levinsohn said.

 

Tags: , , , , ,

 

Share this Post



 
 
 
  • Bryan

    Who cares how the mind-rotting dreck is distributed, so long as everyone gets their 40+ hours a week of it?

  • curmudgeon2000

    Twenty, maybe fifteen years ago this would have been a
    visionary prediction. Now it’s just the confirmation of
    the obvious. The only question is how long it will take,
    as the incumbents fight their increasing irrelevance in a
    world where producers can connect directly with consumers
    without the need for any intermediaries.

 
 
css.php