HBO and other pay-TV services may want to redouble their efforts to contain the growth of Netflix. According to a recent survey from financial services firm Cowen & Co., nearly a quarter of Netflix subscribers have canceled their premium TV service.
Netflix CEO Reed Hastings sees things a bit differently, however. The outspoken leader claims that Netflix is complementary, not competitive, with premium TV services such as HBO and Showtime. Says Hastings:
“We compete with HBO like baseball and football compete . . . We sell to the same person, we deliver some of the same emotion, but it’s not direct competition. People subscribe to both. And the people who love us often subscribe to HBO. They don’t have any of the same content we have, and we don’t have any of the content they have. So it’s a pretty indirect competition for time and money.”
Do you think Hastings is right, Insiders? Are Netflix and pay channels such as HBO an either/or proposition for you, or are you willing to splash out for both?
[via Home Media Magazine]