Netflix furthers US cable partnership push (NFLX)

pulse

January 31, 2018 8:21 PM

Netflix is now available on the set-top boxes of Altice USA, the latest US cable company to partner with the video streaming giant

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Netflix is now available on the set-top boxes of Altice USA, the latest US cable company to partner with the video streaming giant,Reutersreports. Netflix is accessible through Altice One, which is Altice’s device that allows users to access streaming services like YouTube and Pandora. Netflix is partnering with an increasing number of cable providers, and is also integrated into Comcast’s Xfinity X1 set-top box.

Under the partnership, Altice customers who aren’t already subscribed to Netflix can do so directly through Altice One. Altice USA is one of the US’ largest broadband communications and video service providers, with3.4 millionresidential pay-TV customers as of Q3 2017. For context, Comcast reported21.3 millionresidential video customers for FY 2017.

The Netflix-Altice partnership represents Netflix’s ambition to grow through bundling with TV and internet providers. In Q2 2017, Netflix partnered with telecom SFR Group, a France-based subsidiary of Altice, to be sold with SFR’s internet and TV services, for example. Bundling with TV and internet providers is mutually beneficial — Netflix can increase its reach in new markets, while its partners are able to upsell existing customers to more expensive packages.

Bundling with cable operators allows Netflix to capitalize on consumers who view linear TV and OTT services as complementary. A September 2017 study found that 49% of consumers who had their pay-TV service for four years or more subscribe to an OTT service, per TiVo. Even with the broader trend of consumers relying less on linear TV in favor of cheaper digital alternatives, Netflix can grow through set-top box partnerships by capturing long-term pay-TV subscribers who use OTT services in addition to pay-TV.

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