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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
by ansy 15y ago
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]
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.
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.
[1] http://mediadecoder.blogs.nytimes.com/2011/12/06/netflixs-chief-sees-hbo-as-its-main-rival/ http://mediadecoder.blogs.nytimes.com/2011/12/06/netflixs-ch...
- wickedchicken 15y ago> great synergy you don't work for verizon by any chance, do you?