Is Netflix (NASDAQ:NFLX) a friend or foe? That's one question Comcast (NASDAQ:CMSA) CEO Brian Roberts is getting used to hearing. And, just like everyone else in the industry, he's got a multi-part answer for the impact the video distribution company has on his business.
On the one hand, Netflix's streaming is good for the MSO's broadband business. It also has an upside as a content outlet for NBCUniversal, which Comcast recently bought. The two currently are negotiating a distribution deal.
But, of course, there is potential for a negative impact as well, if, and as Roberts says "the jury is out" on this one, Netflix really is causing subscribers to cut the cord to their cable TV service.
Although Netflix may be a threat to Comcast's subscriber base, it likely is more of a worry to companies that rely on add-on services for revenue, like Time Warner's HBO.
- see this Wall Street Journal article
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