Verizon Considers Buying Netflix

I won't hesitate to add "I hope not" because of the obvious implications of Verizon absorbing an otherwise useful service.<p>It seems disingenuous to portrays Netflix as though it were in legitimate trouble as a business. Netflix has certainly had mishaps and a loss of subscribers; but I don't think that's inclination to suspect that they are looking to jump ship. Selling (and tying) themselves to Verizon would just leave a vacuum for another agnostic service to replace it.

Absolutely not. Data carriers should not be able to supply any content over its pipes. There is already precedent restricting vertical integration -- see the United States v. Paramount Pictures (<a href="http://en.wikipedia.org/wiki/United_States_v._Paramount_Pictures,_Inc." rel="nofollow">http://en.wikipedia.org/wiki/United_States_v._Paramount_Pict...</a>).<p>That would also seemingly invalidate most of the cable TV industry, but in that case, you're arguably paying for the TV feed (which just happens to be carried over cable), rather than the cable itself (which is what you pay for with Internet access). Same argument applies to the public switched telephone network. You're paying for voice service, not the infrastructure; that is why 'data' is a separate line item on your cellular bill.

Might as well read: "Verizon Considers Destroying Netflix"

Verizon is a good partner for Netflix. No product overlap and great synergy. Verizon will get a leg up for the next generation of TV which will sell itself with home and mobile data plans while Netflix will get oodles of capital and improved digital delivery costs. The capital is what Netflix really needs if it wants to spin up premium TV shows at $100 million a pop to compete with HBO. [1]<p>The DVD business probably doesn't do as much for Verizon. Thankfully that's already profitable and Verizon would be getting it for free after Netflix's failed divorce tanked its valuation.<p>I don't think antitrust will be a real issue. The courts have been fairly permissive such as with NBC and Comcast. If anything, Verizon and Netflix is more like Comcast and Xfinity.<p>[1] <a href="http://mediadecoder.blogs.nytimes.com/2011/12/06/netflixs-chief-sees-hbo-as-its-main-rival/" rel="nofollow">http://mediadecoder.blogs.nytimes.com/2011/12/06/netflixs-ch...</a>

What an awful idea. Netflix had to make some bad deals that it now has to live with. They'd also have to deal with the dying DVD business that has nothing to do with Verizon's business model. They'd likely have to find a buyer for that and spin it off. Maybe that's what Netflix was trying to prepare for with quikster.<p>Netflix owns nothing. Any exclusivity is small and worth very little. There is no value there. If you're a streaming customer, there's nothing keeping you with them once someone comes out with a competing service at a lower price.<p>Netflix is a distributor that can easily be replaced by any of the big guys: iTunes, Amazon, Microsoft, etc. If Verizon wants to get into this game, they should partner with a big guy who can build the distribution network for them.

"Citing a source close to the matter" - I wonder how much Netflix stock this source had before leaking the story. Don't hedge funds stir rumor for their own gain?

Seems like this news falls squarely in the "someone's got to" area. Verizon might not be the ideal buyer, but Netflix has run into the dual problems of bandwidth and IP restrictions. They could really use a corporate parent to fight their way through.<p>Verizon could really help on the bandwidth side, but companies like Comcast, Apple, Microsoft, or Amazon could all help on the IP side.

Aren't they already in the movie streaming business via FiOS?

I hope netflix doesn't commit yet another blunder. Though verizon would benefit enormously by this deal, the end users are at risk of locking in with verizon.