Light Reading

Icahn: Netflix Sale Has 'Crossed Our Minds'

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
11/1/2012
50%
50%

Welcome to today's broadband and cable news roundup.

  • A sale of Netflix Inc. (Nasdaq: NFLX) is among the strategies that have "crossed our minds," billionaire activist investor Carl Icahn told Bloomberg TV soon after word spread that he had taken a 10 percent stake in the video streaming and DVD rental giant. He said the over-the-top video market is getting crowded and he expects to see some consolidation, identifying Microsoft Corp. (Nasdaq: MSFT), Google (Nasdaq: GOOG) and Verizon Communications Inc. (NYSE: VZ) among potential suitors. "We don't have any definite plans or proposals, but I think it's almost obvious that there should be consolidation," Icahn said. (See Icahn Nabs 10% of Netflix .)

    He also thinks "nobody has a better platform than Netflix" to take advantage of a trend that is seeing consumers view more and more video via Internet-connected TVs, tablets and smartphones. Icahn believes Netflix should place less emphasis on older library content and spend a lot more developing original programming to help it compete with premium subscription services such as HBO. For more, check out the interview below:



  • Cable outages in areas affected by Hurricane Sandy had fallen "well under" 20 percent as of Wednesday morning, Broadcasting & Cable reported, citing David Turetsky, chief of the Federal Communications Commission (FCC) 's Public Safety and Homeland Security Bureau. The day before, the FCC said the average was about 25 percent. (See Service Providers Assess Sandy's Impact .)

  • Cablevision Systems Corp. (NYSE: CVC) said recovery efforts underway following the storm has caused it to reschedule its third-quarter earnings call to Tuesday, Nov. 6 at 11 a.m.

  • Online video publisher Brightcove Inc. posted a third-quarter net loss of $600,000 (2 cents per share) on revenues of $22.1 million, up 32 percent from the year-ago quarter. Brightcove ended the quarter with cash and cash equivalents of $30.8 million, down from $58.6 million in the previous quarter due primarily to its $27.2 million acquisition of Zencoder, a cloud-based video encoding service. (See Brightcove Raises $55M in Nasdaq Debut .)

  • The Denver-based The Cable Center has expanded its board by three with the appointments of: Cox Communications Inc. SVP of Customer Experience Paul Cronin; CableLabs President and CEO Phil McKinney and newly named Comcast Corp. (Nasdaq: CMCSA, CMCSK) Regional VP, Mountain Region, Kyle McSlarrow. They'll serve three-year terms. (See McSlarrow Takes Over Comcast's Mountain Region and Ex-HP CTO Named CableLabs CEO.)

    — Jeff Baumgartner, Site Editor, Light Reading Cable

    (6)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    Jeff Baumgartner
    50%
    50%
    Jeff Baumgartner,
    User Rank: Light Beer
    12/5/2012 | 5:18:21 PM
    re: Icahn: Netflix Sale Has 'Crossed Our Minds'


    He's certainly placing a bet that he can do well with another agitation.


    We haven't gotten a response (yet), but here's the first comment so far from Netflix, according to the NY Times: "We have many shareholders, now including Mr. Icahn, and we're alwasy open to their perspective on how to build on our success."


    Which doesn't say anything other than an acknowledgement that they've noticed. JB  


     

    elgato990
    50%
    50%
    elgato990,
    User Rank: Light Beer
    12/5/2012 | 5:18:21 PM
    re: Icahn: Netflix Sale Has 'Crossed Our Minds'


    So he is betting that Netflix is the next Instagram or OMGpop or Skype?   Where the strategy is to attack someone with a money losing business in hopes that they buy you for an irrational sum of money?  

    ethertype
    50%
    50%
    ethertype,
    User Rank: Light Sabre
    12/5/2012 | 5:18:20 PM
    re: Icahn: Netflix Sale Has 'Crossed Our Minds'


    The story of Netflix streaming to date is "great platform, shame about the content."  It's hardly their fault; their early dominance painted a huge target on their back, leading content owners to cripple them by withholding and overpricing content.  


    So if someone is going to buy Netflix, they will have to solve the content problem, most likely by blowing up the one-size-fits all Netflix price-value model, paying more and charging more for premium content.


    Buyer type 1 -- Large multichannel video provider (MVPD) that naturally already has strong content relationships but hasn't figured out streaming yet.  Could DBS providers be at the top of this list?


    Buyer type 2 -- Strong consumer brand, looking to jump start a weak video business. Maybe Sony or Google?


    Buyer type 3 -- Consortium of content players, most likely Hulu, who decide they're ready to accelerate their bypass play, even while they individually continue to act cozy with the MVPDs.


    Discuss.

    shygye75
    50%
    50%
    shygye75,
    User Rank: Light Sabre
    12/5/2012 | 5:18:19 PM
    re: Icahn: Netflix Sale Has 'Crossed Our Minds'


    Having Carl Icahn show up on your shareholders roster is like having Gordon Ramsey walk into your restaurant, camera crew in tow. It means things are bad, and they aren't likely to get better for you in the long run.

    shygye75
    50%
    50%
    shygye75,
    User Rank: Light Sabre
    12/5/2012 | 5:18:16 PM
    re: Icahn: Netflix Sale Has 'Crossed Our Minds'


    Gordo showed up at two restaurants in my area (Bergen County, NJ). One place closed in less than a year, and the other shut down after the chef/owner jumped off the George Washington Bridge. As far as Netflix becoming something other than a distribution channel by creating its own content, best of luck on that. I would guess that the failure rate for content producers is even higher than for start-up restaurants.

    AESerm
    50%
    50%
    AESerm,
    User Rank: Light Beer
    12/5/2012 | 5:18:16 PM
    re: Icahn: Netflix Sale Has 'Crossed Our Minds'


    That's a frightful image, but Chef Ramsey also on occasion turns a restaurant around, non? That said, not sure I follow Icahn, despite what he sees as "self-evident" and "almost obvious." He points to $2.5b in rev domestically and the prospect of using that for fresh content. Net income in 2011 was $226m. Is that what he wants to tap? 

    Flash Poll
    From The Founder
    Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
    Live Streaming Video
    CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
    Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
    LRTV Custom TV
    End-User or Enterprise Benefits to the New IP

    7|30|15   |   04:27   |   (0) comments


    Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
    LRTV Custom TV
    Network Visibility & the New IP

    7|30|15   |   02:23   |   (0) comments


    Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
    Between the CEOs
    Video Exclusive With Basil Alwan, Alcatel-Lucent

    7|24|15   |   26:44   |   (5) comments


    Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
    LRTV Custom TV
    VDF: Enable the Financial With Mobile Money

    7|20|15   |   06:53   |   (0) comments


    Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
    LRTV Custom TV
    Telefónica on OSS Transformation

    7|20|15   |   06:01   |   (0) comments


    Jose Gonzales discusses the details of Telefónica's operation transformation program.
    LRTV Custom TV
    Judi Achmadi on Huawei's Cloud Storage Solution

    7|20|15   |   03:33   |   (0) comments


    Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
    LRTV Custom TV
    KPN Enlightening Digital Business & IT Transformation

    7|20|15   |   06:19   |   (0) comments


    Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
    LRTV Custom TV
    Stratus Telco-Grade Cloud Solutions & NFV

    7|20|15   |   07:34   |   (0) comments


    Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
    LRTV Documentaries
    The Six Million Dollar Business Man

    7|20|15   |   01:52   |   (0) comments


    Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
    Between the CEOs
    CEO Chat With Anukool Lakhina, Guavus

    7|20|15   |   38:51   |   (1) comment


    Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
    LRTV Custom TV
    IBM's Flash Storage With Intel QuickAssist

    7|20|15   |   03:18   |   (0) comments


    Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
    LRTV Huawei Video Resource Center
    Thailand's AIS: Transforming to an FMC Operator

    7|17|15   |   4:53   |   (0) comments


    Saran Phaloprakarn, Senior VP of Fixed Broadband Business Management of Thailand's AIS, was a keynote speaker at the first Asia-Pacific Ultra Broadband Summit in Bangkok. In this video, he talks to Heavy Reading about transforming into an FMC (FBB+MBB+Content) operator.
    Upcoming Live Events
    September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
    September 16, 2015, The Westin Galleria Dallas, Dallas, TX
    September 16, 2015, The Westin Galleria Dallas, Dallas, TX
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
    November 5, 2015, Hilton Santa Clara, Santa Clara, CA
    November 17, 2015, Santa Clara, California
    December 1, 2015, The Westin Times Square, New York City
    All Upcoming Live Events
    Infographics
    Network operators start seeing savings from NFV in the first year, according to a study by Affirmed Networks and ACG.
    Hot Topics
    Robbins Succeeds Chambers as Cisco Changes CEOs
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/27/2015
    Cable Feuds With Senate Dems Over STBs
    Alan Breznick, Cable/Video Practice Leader, 7/31/2015
    RJio to Launch Its Own 4G Devices Brand
    Gagandeep Kaur, Contributing Editor, 7/27/2015
    Qualcomm Wants FCC to Stay Out of LTE-U Fray
    Sarah Thomas, Editorial Operations Director, 7/27/2015
    Like Us on Facebook
    Twitter Feed
    September 22, 2015
    Media Begins With “Me”
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
    Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
    Cats with Phones
    Comes With Free Phone Stand Click Here
    Who says cats don't have any skills?