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Netflix, Inc. (NFLX) is Talking with Telecom Italia SpA (ADR) (TI) to Discuss Content Deal

Telecom Italia SpA (ADR) (NYSE:TI), the biggest phone company in Italy, stated that it is currently in talks with Netflix, Inc. (NASDAQ:NFLX) over a possible deal with the online movie streaming company, as reported on Reuters.

Netflix Inc logo (NFLX)

The details are still limited because the agreement between Netflix, Inc. (NASDAQ:NFLX)  and Telecom Italia SpA (ADR) (NYSE:TI) is still being defined, but it seems that the offer will combine the famous video streaming company with the fast data connections of Telecom, which are indispensable to be able to access the high bandwidth services of video streaming, rental, purchase and download. So only subscribers to Italian ADSL and fiber connections can choose to subscribe to Netflix for an estimated cost of 10 Euros ($US10.70) per month.

“We are in talks also with Netflix. In some European countries (Netflix) has chosen to make deals with telecoms operators,” Telecom Italia Chief Executive Marco Patuano told a parliamentary hearing.

Telecom’s CEO was referring to the fact that in Belgium, Netflix services are available through the TV platform of the national telecoms company: Belgacom.

It seems that the offer of Netflix for this European country will not be the same quantity and content that has made the company a great success to subscribers in the USA. In late 2014 Netflix had 50 million subscribers, with more than 35 million of those being in the US. For Italy, Netflix, Inc. (NASDAQ:NFLX)  and Telecom seem to be thinking of a narrower catalog than the one that’s offered in the US, specifically chosen and picked for European viewers. Nevertheless, it’s good news for all users who waited years with great interest to experience Internet TV overseas.

The arrival of Netflix in Italy can be compared to the launch of, Inc (NASDAQ:AMZN) in that country. As e-commerce has revolutionized retailing by making goods available at competitive prices, along with efficient shipping and customer service of high quality, so will the landing of Netflix have all the credentials to unlock the current market of Italian television, as its been known for several years.

With Netflix subscriptions at affordable prices and with high quality content, it appears traditional TV over the air such as those of Sky and Mediaset Premium, as well as digital services already available via the internet, including Apple Inc. (NASDAQ:AAPL)’s Apple TV and iTunes Store, will have to deal with an established company that has been able to anticipate the times and to emerge on top of its competition, both in old and new generation technologies.

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