Netflix (NASDAQ: NFLX) has crossed a threshold in the United Kingdom that it has been unable to surpass in the United States, with telco giant BT now bundling in the SVOD programmer as part of the regular pay-TV service it offers to subscribers.
Just as U.S. pay-TV operators such as Verizon (NYSE: VZ) are doing, BT is offering the Netflix service as a promotional offer to entice new customers. For the first six months, subscribers pay only $9.50 (American) for pay-TV, broadband and Netflix.
As GigaOm notes, differentiating BT's offer is that the SVOD service's bill is being bundled into BT's overall pay-TV bill, much like how U.S. operators account for services such as HBO.
Netflix still controls the customer relationship, meaning subscribers cancel their service directly through the SVOD provider. But the Netflix service is being treated, for all intents and purposes, like a premium cable channel. That's new.
Netflix CEO Reed Hastings has long sought a relationship with pay-TV operators that mirrors that of premium cable services such as HBO. This is a step in that direction.
- read this GigaOm story
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