Liberty's (LMCA) Malone Thinks Cable Companies Should Create Netflix (NFLX) Rival
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Liberty Media (Nasdaq: LMCA) CEO John Malone said Thursday during the company's Analyst Day webcast that cable companies should team up to create a company which would rival the likes of Netflix (Nasdaq: NFLX), delivering programming to customers over the Internet on a national basis.
Malone continued that cable companies would be able to reduce content costs by acquiring under one brand and then selling in bundles with broadband.
One example he gave was Comcast (Nasdaq: CMCSA) making Xfinity product available across the segment. This would help companies gain back market share from satellite providers like DISH Network (Nasdaq: DISH) and DirecTV (Nasdaq: DTV), not to mention telecom giants like AT&T (NYSE: T) and Verizon (NYSE: VZ).
Malone criticized the slowness of cable companies, which allowed Netflix to become large enough to negotiate better prices.
Following the commentary, names like Time Warner Cable (NYSE: TWC), Charter Communications (Nasdaq: CHTR), and others are ticking higher.
Malone continued that cable companies would be able to reduce content costs by acquiring under one brand and then selling in bundles with broadband.
One example he gave was Comcast (Nasdaq: CMCSA) making Xfinity product available across the segment. This would help companies gain back market share from satellite providers like DISH Network (Nasdaq: DISH) and DirecTV (Nasdaq: DTV), not to mention telecom giants like AT&T (NYSE: T) and Verizon (NYSE: VZ).
Malone criticized the slowness of cable companies, which allowed Netflix to become large enough to negotiate better prices.
Following the commentary, names like Time Warner Cable (NYSE: TWC), Charter Communications (Nasdaq: CHTR), and others are ticking higher.
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