Written by: Roshan Dwivedi
Analysts from Macquarie Research have laid out a plan for the TV giants to beat Netflix, and the two main pieces are maximizing the effect of Hulu and protecting the cable TV bundle. In short, Hulu is owned by the TV giants, and the Macquarie analysts think this makes it the perfect tool to help them stop selling shows to Netflix.
Right now, selling shows to Netflix is easy money for these companies. But some top TV executives have begun to regard these deals as a slow-acting poison, perhaps capable of eventually destroying the linear TV business.
Hulu gives them an out. If the traditional industry titans can make enough money licensing to Hulu, they can cut many of their ties with Netflix, and stop inadvertently financing their biggest threat.
The analysts say this could come from efforts to protect the pay TV bundle, if in a slightly altered form. One tactic the analysts point to is putting more content on VOD platforms that still require a cable subscription.
Source : Business Insider