Netflix CEO Reed Hastings is very outspoken, and now he even spilled the secret of what TV networks can do to beat him. Hastings says that the secret weapon is just two words – TV Everywhere. TV Everywhere means allowing users to watch TV whenever and wherever they want with the help of on-demand streaming apps.
TV Everywhere – a threat to Netflix
Earlier this week, speaking at a New York Times conference, Hastings said he believes the strength of these apps are vital for content providers to compete with streaming services, including Netflix, in the ever-changing video landscape.
The Netflix CEO said the streaming companies see TV Everywhere as the “fundamental threat.” Viewers get access to all content the ecosystem presents for the same price, now on demand. It is a troubling fact that the ecosystem has not been able to execute on that for several reasons, Hastings said.
Hastings did made a valid point here as content providers such as Time Warner – owner of HBO, Turner Broadcasting and a lot of other networks – have had sufficient time of seven to eight years to get TV Everywhere right, but despite that, they failed miserably at making a cohesive system work as an integral part of the everyday viewing habits of common people. This has given opportunities to Netflix and all other follow-up services such as Amazon and Hulu to refine their offerings and fill the void.
Hastings confident TV networks won’t pull it off
Hastings’ giving away of secrets to competitors without any tension suggests that he believes it is not possible for them to pull it off well, according to Re/code. While talking about Time Warner, CEO Jeff Bewkes, and other executives like Rupert Murdoch of Fox, Hastings also laid out a theoretical plan on how they can successfully compete with Netflix.
“The challenge in the industry is that it’s very fragmented between the cable networks and the distributors, and so it’s really tough to work well together, to extend the ecosystem,” Netflix’s CEO said.
Hastings meant that the makers of TV shows and movies had not been able to figure out a good way to license their content to multiple distributors, something that is mandatory to providing a congruent viewing experience on TV Everywhere apps. Cable companies and satellite providers are included in those distributors.