Integrating Netflix into traditional pay-TV services, such as Virgin Media and BT TV, has had a net positive impact on these operators’ performance, according to a new report from IHS Technology.
These partnerships are not appropriate for all, though – operators investing in their own movies and entertainment content, such as Sky, typically remain wary of working with Netflix;
Netflix has partnerships in place with 25 pay TV providers, IHS says, with many more likely to follow after the over-the-top (OTT) video giant expanded to 130 new territories last month.
“Many of the operators working with Netflix have seen customer satisfaction ratings improve under the partnerships, which have helped foster positive operational performances,” comments Ted Hall, Research Director at IHS Technology.
In the longer-term, there is a risk that Netflix will put pressure on some of operators’ core services, including premium movie packages and video-on-demand (VoD) offerings.
This year’s TV Connect (26th – 28th April 2016 ExCeL, London) features a dedicated content track, ‘Millennial Monetisation’, with Hopster’s Nick Walters among the speakers exploring ways to adapt to changing media consumption patterns in younger generations. Click here to download the free brochure