Plans from Apple Inc. (NASDAQ:AAPL), Google Inc (NASDAQ:GOOG) and Intel Corporation (NASDAQ:INTC) to stream television programming may receive a setback from the cable companies, who according to the reports last week are unwilling to share the content. The news comes as a wonderful development for the shareholders of Netflix, Inc. (NASDAQ:NFLX).
Apple deal with Disney restrictive
The agreements between Apple Inc. (NASDAQ:AAPL) and Disney’s ESPN and Apple Inc. (NASDAQ:AAPL) and HBO this week are so restricted, at least as of now, that limits the further development of the plans in a successful manner, says a report from Forbes.
Netflix to benefit
Even though Netflix also loses when media companies hoard their content, in a way it’s beneficial for Netflix as it prevents these competitors in becoming a threat.
Netflix is well ahead of the competitors when it comes to handling such problems. The streaming company acquires and creates original content to overcome the issue. Netflix recently announced a deal with DreamWorks Animation to use its original content.
Intel may suffer more
According to a blog from The Wall Street Journal, Intel negotiations in particular are not going very well. Intel’s TV product, which is expected to launch this year, will have live TV feeds. These feeds are considered a strong selling point that will encourage other cable customers to cancel those subscriptions. Therefore, cable companies are more determined in their protest against Internet TV.
For Intel, it will be a huge blow as the chipmaker is presently struggling with its core business. But for Apple Inc. (NASDAQ:AAPL) and Google, it might not be that intense as these two have sufficient products to carry forward the growth momentum in recent years.
Pay-TV providers getting incentives
As per an article from Bloomberg on June 12, media firms are being offered incentives by Time Warner Cable Inc (NYSE:TWC) and other pay-TV providers to refuse an alliance with Internet TV content. The incentives include a higher pay to the refusing companies as well as threats to drop programming of companies that do not co-operate.
In a conference held last week Time Warner and an official at Charter Communications (CHTR) openly spoke in favor of “protecting the ecosystem” of offline pay TV.
Currently, U.S. Justice Department is reportedly investigating whether or not the actions of cable companies are in violation to antitrust laws by limiting online competition. If the decision goes against the companies, then they will have to share content with internet firms.