According to BusinessWeek.com, Cable companies are toying with the idea of having Netflix, one of their major competitors, make its video streaming service available through their cable boxes. The online streaming king already made similar deals with a UK cable provider, Virgin, to offer its video streaming in their TiVo boxes.
The article states that “Netflix is arguably the biggest reason why people feel inspired to cancel their cable subscriptions” So why should cable companies welcome Netflix? The integration of Netflix on cable boxes seems like a threat, but it is also an opportunity for the cable companies. According to the article, If cable companies incorporate Netflix on their cable boxes, the cable companies can charge the user a mark-up on the Netfix service or the cable companies can charge a usage fee for how much the user is online (i.e the Netflix streaming). Either way it would be win-win situation for Netflix and the cable companies.