What we can learn from the Netflix, deComcast alliance

folarin okunola

November 8, 2016 1:19 PM

Netflix's content will be fully integrated into Comcast's boxes, effectively making Netflix content available on cable boxes.

Reed Hastings, co-founder and CEO of Netflix, delivers a keynote address at the 2016 CES trade show in Las Vegas, Nevada January 6, 2016. REUTERS/Steve Marcus

Digital media company,

Netflix's content will be fully integrated into Comcast's boxes, effectively making Netflix content available on cable boxes. Think iROKO on DSTV or something similar.

Netflix's user growth has slowed in 2016: Between Q3 and Q4 in 2015 it added about 5 million new subscribers compared to Q1 and Q2 2016 when it could only garner about 2 million new subscribers.

To combat that slowdown in growth, it launched its services globally, bringing the total number of countries with access to Netflix to 190. With that in mind, it is not hard to see why the Comcast deal is a great deal for Netflix.

The kind of people that make use of Netflix's services are internet-savvy users who have the knowledge and tools to set up a Netflix account and wade through its services.

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That leaves a gap of older consumers who are either perfectly fine with their cable boxes or aren't tech-driven enough to make use of Netflix as a media tool.

This deal gives Netflix access to the latter group of people and ultimately gives it more room to expand its subscriber base.

What does this have to do with anything?

Imagine iROKO, or even Netflix itself, is able to partner with a cable provider (will probably never happen but let's say DSTV) to set up a similar deal.

That would basically become one of the strongest players as far as media and content delivery is concerned. Netflix already has servers here in Nigeria so it's not afraid to do proper groundwork.

Yes, Africa's internet penetration figures and the average cost of data is not enough to suggest that Netflix will be as successful, even with a Comcast-type deal, but just consider the possibilities.

I think this is brilliant deal and an interesting use case for content marketing and user growth acceleration. What do you think? Send me a tweet: @TheFolarin.

folarin okunola

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