Do Facebook and Netflix have something big in the works? The Washington Post states that Netflix CEO Reed Hastings has signed up with the board of Facebook, successfully melding the energy of the internet and through mail movie subscription service with the biggest internet social network on earth. Hastings joins Netscape founder Marc Andreesen, PayPal co-founder Thiel and Washington Post Co. chair Donald Graham on the Facebook panel. Article source: Netflix CEO Hastings joins Facebook corporate board
TV viewing experience changes
A partnership between Netflix and Facebook is a win-win for the two companies. Several sources suggest there are lots of reasons for the relationship to be good news. CNet indicates that film and television studios like Warner Bros. have attempted to sidestep Netflix by approaching Facebook directly with offers to stream content. Netflix may be able to stay on top with internet streaming with a Facebook alliance.
If Netflix doesn't get access to the Facebook database, then Facebook will sure get access to Netflix's database. This will afford Facebook CEO Zuckerberg and company additional chances for revenue, as Netflix users who are not already Facebook customers might be swayed by the lure of Facebook credits. Plus, Facebook's user base showed less than normal growth in May at only 1.7 percent, so a new user infusion will turn out to be welcome.
Never discount industry savvy
Zuckerberg looks forward to a partnership with Reed Hastings, the CEO of the most successful internet streaming video business.
Reed is an entrepreneur and technologist who have led Netflix to transform the way people watch movies and TV," said Zuckerberg. "He has built a culture of continuous, rapid innovation.
Hastings, who is also on the panel of Facebook investor Microsoft, sees a fantastic deal of forward momentum.
Facebook is propelling a fundamental change in how people connect with each other and share all kinds of content," Hastings said. "I'm looking forward to working with them.
Too much internet loading
Netflix.com uses a fifth of the traffic in the United States during peak internet use periods. This is because of the loading information individuals want to view. This fact isn't lost on the telecom industry, writes the Washington Post. Hastings' idea is a massive threat to many different studios. On top of that, there are many concerns ISPs that manage bandwidth have.
There's a lot of popularity surrounding Netflix. There are over 20 million subscribers already. This poses a threat to cable and satellite providers whose outdated price models are fast becoming obsolete. By partnering with Facebook, Netflix will only increase its influence.
Winklevoss twins drop Facebook suit
The $65 million settlement with Facebook the U.S. Supreme Court would have had to look at for Cameron and Tyler Winklevoss vs. Facebook has been dropped, as reported by UPI. In 2008, the Winklevoss twins were given a settlement of cash and stock. They continued to pursue an additional $200 million from Facebook in a suit though.
The 9th U.S. Circuit Court of Appeals ruled the $65 million settlement would remain intact. A claim that Zuckerberg's legal team did not expose instant messages necessary in litigation is the only suit between Winklevoss twins and Facebook till open.
Figuring out the connection between all the corporations
Information from
UPI
bit.ly/jKmcDC
Washington Post on merger
wapo.st/mLDGmF
Washington Post on Netflix vs. telecoms
wapo.st/e7kUho
