Netflix Supplemental Now, But "All Will Change"

Liberty Media clearly sees Netflix as a supplemental channel to cable TV, satellite and telco TV distributors, but doesn't think that always will be the case. "Cable players pay us $1 billion and more a year," says Liberty Chief Executive Greg Maffei. Netflix is not in that league as a revenue generator.

"When you look at Netflix, the customers come in two categories," says Maffei. "It’s either the consumer who would never be a premium subscriber or cable subscriber at all."

"The second kind of consumer is the price-sensitive viewers who have cable but like the ease of over-the-top options at the right price," says Maffei.

But "all of this will change," Maffei notes.

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