Netflix Helps People Cut Cable Cord, Report Says

Article in the NYT: Netflix Helps People Cut Cable Cord, Report Says

Summary: A new survey notes that customers who use Netflix streaming video are twice as likely to cancel or slim down their cable services as they were this time last year.

Comment: I cancelled cable this year. Netflix combined with over the air television has worked good for us. Having a device like a Roku or Wii that will allow you to put the content on your tv instead of just watching on laptop I think really pushes this idea over the tipping point.

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Content providers will demand more money as Netflix grows. This will put pressure on Netflix to raise prices. Cable providers also provide much of the broadband access in the U.S. As cable subscribers cancel their accounts the cable companies may start to raise prices on broadband access.

Here is a recent story about Sony content being removed from Netflix watch it instantly: The Real Reason Sony Movies Disappeared From Netflix

Excerpt from article: So what’s the contract issue about? A person with knowledge of the situation says that Starz had reached an IP distribution cap in its contract with Sony that resulted in Starz asking Netflix to temporarily take down the Sony content. The clause was part of the most recent deal between Starz and Sony, which likely didn’t anticipate the tremendous growth Netflix has seen for its streaming subscription service over the last few years. Netflix’s subscriber base has grown nearly 70 percent over the past year, from 14 million subscribers in the first quarter 2010 to more than 22.8 million subscribers in the U.S.

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