Netflix is sitting pretty at the top of the cord-cutting throne. In fact, 79.4% of cable subscribers also have a Netflix account. So while people continue to cut the cord left and right, and Netflix continues to see growth, cable companies are trying to figure out a way to stop the bleeding.
In Comcast’s eyes, the only way to stop that bleeding is to make Netflix bleed instead. Rumblings of this started when Comcast made a big to purchase the British satellite operator known as Sky.The bid was made for a lofty $30.9 billion.
Speculation ran rampant, causing research firm Moffett Nathanson to step in. The firm believes that Comcast is looking toward the content on Sky as a means to create a competitor for Netflix on the global scale.
Firm co-owner, Craig Moffett said,
“One can assume that Comcast believes that the combination of Sky’s and NBCU proprietary content will be enough of a deterrent to ensure that the margins available to an OTT provider don’t simply get competed away. There are a great many assumptions required if Comcast’s presumed strategy is to succeed. Running the table on all of them is a rather uncertain outcome, and demands what some might read as rather accommodating business decisions from some rather deep-pocketed competitors… What is at issue here isn’t just whether the global or pan-European OTT war is a war that Comcast can win. It is also whether it is a war worth winning.”
This is still a developing story. As more details become available we will share them with you.