As Netflix, Inc. (NASDAQ:NFLX) expands its tentacles in France by partnering with the largest telecom company, Orange SA (ADR) (NYSE:ORAN), it has one goal in mind. Through its content, Netflix will try to thwart the competition from other French streaming services which will also be available to Orange SA (ADR) (NYSE:ORAN) subscribers, according to Pierre Louette, deputy chief executive of Orange SA (ADR) (NYSE:ORAN), as heard on Bloomberg.
“[…] Probably we are going to have two types of deals and will be brought to the customers here. Netflix, Inc. (NASDAQ:NFLX) will be one of the many sources of content, one of the many sources of movies that customer can access to, OCS, Orange SA (ADR) (NYSE:ORAN) series is one of them, Canal +, Canal Play is, there are so many sources, Netflix will be one of them and then the customer will judge […],” said Louette.
The two types of deals that the deputy chief executive mentioned earlier, relate to two different ways of making Netflix, Inc. (NASDAQ:NFLX) available to the French audience. Firstly, it is through the internet where subscribers of Orange SA (ADR) (NYSE:ORAN) can stream Netflix’s content and secondly through the set-top boxes.
A set-top box is essentially a device that converts the digital signal to an analogue one so that the stream can be viewed on a more conventional television set, or in a more simpler sense it facilitates the viewing of cable or satellite television. Louette pointed out that Orange SA (ADR) (NYSE:ORAN) has such set-top boxes in many countries, throughout Europe. This also raises questions about scope of the current deal. Will it span many other countries in Europe, in near future?
With a market cap of $26.3 billion, the California based streaming service, Netflix, Inc. (NASDAQ:NFLX), is one of the biggest in the world. The company is a growing concern, although until now U.S. remains the company’s biggest source of revenue.
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