Reed Hastings, CEO of Netflix is addressing a topic at today's NewTeeVee Live 2009, we talked about a few weeks ago: integrating Netflix streaming into consumer devices.
"Hollywood likes us when we bring big checks," said Hastings, in a 'fireside chat' with Om Malik. "They take a high risk, calculating the payback of creativity, so they are always looking for effective new forms of distribution."
"From a studio perspective, they'd like to sell DVDs before they go to rental houses," said Hastings, noting this is possible already in Europe, "so our integration into consumer devices might create an earlier window for studios to capitalize on different sales models."
When Malik asked about streaming, Hastings said Netflix wants to continue to play both sides.
"We have to help keep the DVD ecosystem as big as possible, but we also want to grow our streaming business," said Hasting. "41% of subscribers - up from 22% a year ago - had streamed content in the last quarter, but DVD is still continuing to grow for several years."
"We also expect to start streaming internationally next year, although we've not announced where we'll begin streaming."
Hastings also said Netflix benefits the cable companies, despite protests to the contrary.
"When a customer talks about cutting the cord, in reality they're cutting the video cord but upping their internet connectivity," said Hastings, "so the cable companies benefit since they have markets in television, telephony and data."
This is part of the Third Wave discussion started over at workflowed.com.
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