Verizon's Denies Netflix Takeover Talk, Might Be Interested in Redbox

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News Posted: Tue, Dec 13 2011 3:31 PM
Shares of Netflix rose by more than 6 percent on Monday after a trade publication reported Verizon was kicking around the idea of acquiring the streaming service. The publication -- Deal Reporter -- didn't reveal its sources, but was very clear about Verizon wanting to get into the streaming sector, and that buying Netflix was a very real possibility. But is it true?

That depends on who you ask. Bloomberg today countered the original story by apparently confirming with "two people with knowledge of the situation" that Verizon hasn't talked about making a move to acquire Netflix and that the two companies haven't discussed a transaction of any kind.


Verizon and/or Netflix could dispel the rumor outright by going on record with a statement, but both companies have so far refused to do so. Earlier in the week, it was also reported that Verizon plans to launch a standalone service to allow customers to stream movies and TV shows over the Web, and so it appears Verizon is at least interested in streaming media, whether it does so on its own or scoops up Netflix.

If all that weren't enough, there are also reports of Verizon meeting with Redbox about a possible content-distribution plan.

"Verizon's not interested in Netflix, they see Redbox as a much better fit," Sam Greenholtz, an analyst with Telecom Pragmatics in Westminster, Maryland, told Bloomberg.

While it's uncertain exactly what Verizon is up to, it's pretty clear the wireless carrier wants to extends its reach.
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LLeCompte replied on Tue, Dec 13 2011 3:45 PM

I think VZ taking over netflix would he horrible. They would cap how many shows you could stream a month, on top of capping how much data they allow you to use on their internet. Thats just my opinion though.

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Ivan92116 replied on Tue, Dec 13 2011 3:54 PM

Please leave Netfix alone. I know they've had a lot of bad press recently, but it works...plain and simple...there is no current service that matches it, not even Amazon.

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I wonder if they own a streaming service if it will count towards your data cap or not. If it didnt then it would be a strong selling point for Verizon.

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ajm135 replied on Tue, Dec 13 2011 4:04 PM

"Can you buy me out now?"

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ajm135 replied on Tue, Dec 13 2011 4:04 PM

"Can you stream me now?"

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ajm135 replied on Tue, Dec 13 2011 4:05 PM

"Can I have my job back now?"

Sorry those are a couple of things i imagine the other compaines saying or it should be verizons new slogan and im sure the original verizon guy is thinking this exact thought i just posted

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jonation replied on Tue, Dec 13 2011 5:00 PM

Ivan92116:

Please leave Netfix alone. I know they've had a lot of bad press recently, but it works...plain and simple...there is no current service that matches it, not even Amazon.

i really could not see them spending that much, for something borderline frivolous (such content would only be for smart phones). wouldnt be worth the huge amount up front

I could just think if you gave everyone of you subscribers a broadband limit waver for your streaming content for say $8 a month. It would include both wireless and Verizon subscribers. For everyone else it would cost more, that what I would do. 

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ADill replied on Tue, Dec 13 2011 8:38 PM

I wonder how much Red box revenue is?

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Samar replied on Tue, Dec 13 2011 9:27 PM

hmm..Interesting.

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AKwyn replied on Tue, Dec 13 2011 9:59 PM

I haven't used Netflix at all so I can't comment as well as the others but I can understand why people might be mad. If Verizon buys it then it could limit their customers to how much they can stream or focus on a Verizon exclusive plan while leaving the others with a highly unviable plan. In any case, I don't think it'd come to that.

I agree with Redbox being a better choice. I mean they're have both streaming and retail kiosks, something that Netflix doesn't have. And there are tons of opportunities if you have retail kiosks, something that Verizon's marketing force can take advantage of in an instant. Sure, the same arguments apply here but they just seem like more of a fit then Netflix.

 

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Any news that will help keep costs down for consumers is good news to me, even it it involves a takeover or not.

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erikiksaz replied on Tue, Dec 13 2011 11:36 PM

I am a bit confused by this move. I don't see the connection between a wireless provider and a DVD kiosk at supermarkets/7elevens =\

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AKnudson replied on Tue, Dec 13 2011 11:57 PM

I would like to see what would happen to the company logo if th two companies merged. Undoubtedly the redbox logo would be subjected to some form of masochism from the new verizon owner. It would really bring some compettion between netflix and red box, we might even see some smaller fees and even some online content on the part of red box.

what type of Access would they get though?

For this to be truly effective verizon would have to finally have to offer an affordable unlimited data plan.

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AKwyn replied on Wed, Dec 14 2011 6:19 AM

erikiksaz:

I am a bit confused by this move. I don't see the connection between a wireless provider and a DVD kiosk at supermarkets/7elevens =\

Verizon is not just a wireless provider. They are a phone company, a cable TV company, an ISP, a Directory Service and a business provider.

The connection between them is perfect as it allows Verizon to expand it's reach and provide a service that benefits all of it's other services.

 

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