The Online Streaming Company Lands a Deal with 3 Cable Providers
Netflix might be heading to your TiVo device after cutting a deal with three cable companies this week. The online streaming giant has had plans in works for expanding services to customers, in its new campaign to insert itself into the cable market. This is going to be made possible by adding a new app to TiVo devices, which will allow users to access content from the company's web site.
Netflix plans to launch its services with three smaller cable companies starting as early as next week. The deals are with Atlantic Broadband Group, Grande Communications, and RCN Communications. The companies provide services to roughly 685,000 total customers, with RNC being the biggest provider that delivers content to more than 333,000 subscribers.
Although they are not the biggest multiple-system-operators on the market; Netflix is showing that it is serious about converting cable TV subscribers into joining its services. The company posted a first quarter earnings revenue of 1.27 billion dollars. This gave them a higher than predicted earnings share of $0.86, compared to the 0.83 that analysts were originally expecting them to post. The announcement to move into the TV households of Americans comes after the deal they reached with European cable companies such as the U.K.'s Virgin Media.
Subscribers will start seeing the app show up on their TiVo as early as Monday next week. For some users it will also be added to channel listings the same as HBO and Cinemax. This will enable customers to be able to change their channel to Netflix remotely without having to search for the app service on their DVR device.
Customers who do not currently have a Netflix account will have to sign up before using the service. The process will require three simple steps to start the one month free trial according to the online streaming company. Afterwards, users who wish to become regular subscribers to the content can stay on with the company to continue using the streaming services.
Netflix also announced after posting their first quarter profits that they would be raising subscription rates for customers. This increase will be one to two dollars extra for new subscribers once the plan goes into effect during the second quarter of 2014. Current subscribers will be grandfathered into the plan after 1 to 2 years of keeping their current subscription price.