LOS GATOS, Calif. ? Netflix has a new policy of getting ?along with everyone,? said its CEO, Reed Hastings, The video content company will position itself as a place to catch-up on television shows instead of acquiring the rights for current TV show seasons, Advertising Age reports.
?We would rather be additive to cable, not competitive,? said Hastings. As part of that strategy, Netflix will produce original content, such as ?Lilyhammer,? a new series that will debut next month. The company plans to release its entire first season?eight episodes?at once.
Netflix also said its U.S. subscriptions have jumped by 600,000 in the last quarter, reversing the loss of subscribers after a rate hike last year that competitor Redbox used to launch its own ad campaign. By the end of last year, 24.4 million U.S. residents subscribed to Netflix.
With margins improving on streaming customers, Netflix is now watching Amazon Prime, Hulu and HBO?s streaming services. ?We expect Amazon to continue to offer their video service as a free extra with Prime domestically but also to brand their video subscription offering as a stand-alone service at a price less than ours,? said Hastings.
However, the company doesn?t see the other services as much of a threat. ?Both Amazon and Hulu Plus's content is a fraction of our content, and we believe their respective total viewing hours are each less than 10% of ours,? said Hastings in a letter.
The company will not market its DVD service in 2012. ?We expect DVD subscribers to decline every quarter, forever,? said Hastings.
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