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Liberty Global (LBTYA) Adds Netflix App to Set-Top Boxes
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LibertyGlobal plc. (LBTYA - Free Report) , one of the largest cable TV providers in the world, has reached a long-term agreement with Netflix Inc. (NFLX - Free Report) wherein the latter will be allowed to offer its content on the former’s cable network. The service will be available in 30 of the countries Liberty Global operates in, starting from the Netherlands and gradually expanding to other regions. Notably, Liberty Global already offers Netflix content to U.K. customers via Virgin Media – a company that was acquired by Liberty Global in 2016.
A New Trend
Cable TV providers like Liberty Global and Comcast Corporation (CMCSA - Free Report) have been facing considerable challenges from the over-the-top (OTT) video streaming business model which has led to increased cord cutting in recent years. Notably, people have been shifting toward unbundled packages, dumping the expensive cable TV plans. However, we may see increased partnerships between cable TV operators and OTT service providers in the future. Interestingly, this is Netflix’s second collaboration with a cable operator, after Comcast’s X1 video system deal in July this year.
The Bottom Line
Combining Netflix’s attractive content with its own cable TV system will help Liberty Global’s cable TV services gain more viewers. Moreover, such a partnership will prove beneficial to Netflix as well. The OTT market is slowly becoming a much contested space as an increasing number of telecom operators are coming up with video streaming services like Verizon Communication Inc.’s (VZ - Free Report) ‘Go90’. Thus, we believe that this partnership is a win for both companies.
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Liberty Global (LBTYA) Adds Netflix App to Set-Top Boxes
LibertyGlobal plc. (LBTYA - Free Report) , one of the largest cable TV providers in the world, has reached a long-term agreement with Netflix Inc. (NFLX - Free Report) wherein the latter will be allowed to offer its content on the former’s cable network. The service will be available in 30 of the countries Liberty Global operates in, starting from the Netherlands and gradually expanding to other regions. Notably, Liberty Global already offers Netflix content to U.K. customers via Virgin Media – a company that was acquired by Liberty Global in 2016.
A New Trend
Cable TV providers like Liberty Global and Comcast Corporation (CMCSA - Free Report) have been facing considerable challenges from the over-the-top (OTT) video streaming business model which has led to increased cord cutting in recent years. Notably, people have been shifting toward unbundled packages, dumping the expensive cable TV plans. However, we may see increased partnerships between cable TV operators and OTT service providers in the future. Interestingly, this is Netflix’s second collaboration with a cable operator, after Comcast’s X1 video system deal in July this year.
The Bottom Line
Combining Netflix’s attractive content with its own cable TV system will help Liberty Global’s cable TV services gain more viewers. Moreover, such a partnership will prove beneficial to Netflix as well. The OTT market is slowly becoming a much contested space as an increasing number of telecom operators are coming up with video streaming services like Verizon Communication Inc.’s (VZ - Free Report) ‘Go90’. Thus, we believe that this partnership is a win for both companies.
LIBERTY GLBL-A Price
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Liberty Global currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Interested in IPOs? Check out the special edition of Zacks Friday Finish Line below, where Editor Maddy Johnson and Content Writer Ryan McQueeney interview Kathleen Smith of Renaissance Capital about the IPO market in 2016 (see part two here).