Verizon eyeing a potential Netflix buyout

[Shawn Knight]

Verizon Wireless has emerged as a potential suitor to take over ailing video streaming service Netflix. Shares in Netflix surged roughly $6 as news of the possible buyout reached investors during trading on Monday.

Less than a week ago, word leaked that Verizon has been in talks with movie studios and television networks regarding licensing content for an online streaming service of their own. At the time, Verizon CEO Lowell McAdam noted that his company was interested in such a venture by admitting that Verizon considered putting in a bid for Hulu.com earlier this summer.

Verizon would stream video over Internet connections in markets where FIOS isn’t yet available. It is believed that if Verizon doesn’t buy Netflix, they could introduce their own video service with more than 3,000 titles at a price of $5 to $10 per month. In contrast, Netflix charges $8 monthly for access to over 30,000 programs.

Such a deal could be the saving grace for Netflix, a company that hasn’t had a favorable 2011. Trouble started in July when the online streaming site announced a restructuring of their DVD and streaming plans. At the time, it cost members $10 a month for unlimited streaming and unlimited DVD rentals by mail. The new plan split those services into two separate packages, resulting in a 60 percent increase if members chose to keep both services. Nearly a million subscribers left the service over the incident.

Netflix later decided to split the business into two, renaming the DVD-by-mail department to Qwikster. CEO Reed Hastings called off the plans less than a month later.

Both Netflix and Verizon declined to comment on a possible buyout.

Permalink to story.

https://www.techspot.com/news/46646-verizon-eyeing-a-potential-netflix-buyout.html

 

[Vrmithrax]

This seems like a smart move for both sides, on the surface at least. I'd be fine with it, as long as Verizon doesn't turn the whole thing into a strong-arm tactic that penalizes consumers who are not using Verizon as their internet provider.

 

[Raswan]

"ailing video streaming service"? "saving grace"? How about we jump off the let's-rip-on-netflix-every-chance-we-get bandwagon Techspot, and quit fanning the flames and being dramatic. Just because sites like cnet can't keep from shitting themselves with giddiness over the demise of a company that none of you could say enough good things about until last summer doesn't mean you have to subscribe to the same nonsense.

Netflix still has over 20 million subscribers, over 60% of the streaming markets, and both Hulu, which has been in the game a long time, and Amazon, which has spent a shitpot of money in the last year trying to catch up, are still negligible presences. Blockbuster went belly up because of netflix, and has only recently showed signs of recovery after being bought by Dish. Let's not pretend that a Verizon buyout is either needed to save the company or desired by any of us who use netflix. So sick of not being able to read any article about netflix or streaming that doesn't immediately degenerate into forced outrage. They went from charging 10/month to 16/month? Holy ****. That IS ridiculous. Wait--they haven't implemented 5.1 sound or blu-ray-quality streams yet? WTF are they waiting for? None of that costs money to do.

Tone down the drama. Maybe talk about wait the Verizon buyout would really mean, instead of spending half the article rehashing the same bs over and over.

Rant done.

 

[loydc1]

I agree with you Verizon, AT&T and Apple is all these teck sites rave about onand lest not forget Infell.

 

[Guest]

Here! Here! Netflix is still a good deal for me! I can't see a buyout by Verizon as a good thing for us Netflix subscribers.

 

[treetops]

Don't sell right now netflix! Your stocks are only rising and especially not to the hated verizon.

 

[Guest]

Raswan +1

 

[Jinto]

Oh boy, when Verizon buys out Netflix will I get to pay $14.99 a month for a streaming only option? Because $7.99 a month is just too cheap...

 

[SNGX1275]

"ailing video streaming service"? "saving grace"? How about we jump off the let's-rip-on-netflix-every-chance-we-get bandwagon Techspot,

etc.....

Do you get that fired up about every Apple/iPhone/iPad story? If not, why? I'm genuinely curious.

Now back to topic, I'm a little bit unsure how this makes much sense. Maybe thats just because I live outside of the 20 or so biggest cities in the US and Verizon coverage here is not good, and FIOS well LOL.

 

[Chazz]

SNGX1275 said:

"ailing video streaming service"? "saving grace"? How about we jump off the let's-rip-on-netflix-every-chance-we-get bandwagon Techspot,

etc.....

Do you get that fired up about every Apple/iPhone/iPad story? If not, why? I'm genuinely curious.

Now back to topic, I'm a little bit unsure how this makes much sense. Maybe thats just because I live outside of the 20 or so biggest cities in the US and Verizon coverage here is not good, and FIOS well LOL.

Techspot doesn't make articles about apple that would compare to this. Techspots users jest about apple a lot but that's a lot different than if the authors were doing it in their articles.

 

[Guest]

great not we can experience verizons jacked up prices on our TVs too

 

[Guest]

Originally Posted by Raswan

"ailing video streaming service"? "saving grace"? How about we jump off the let's-rip-on-netflix-every-chance-we-get bandwagon Techspot,

I don't agree with this Raswan...I am tired of big companies strong-arming their customers. Netflix deserves every bad thing that happens for not doing proper marketing due dillgence before instituting a MAJOR change in pricing and service. I am STILL a Netflix customer, but that doesn't mean I appreciate what they did! I am guessing you probably voted for and still like Obama too?