Netflix CEO Reed Hastings says cable, telecom, and satellite companies just don’t get the business model of the Internet, and that “the future of video is web television, not what companies are now calling IPTV.” I would say he’s a bit delusional on that one…
Anyway, Hastings said Netflix will start offering direct Internet service [in association with Tivo] this year, and will dedicate 1 to 2 percent of its annual revenue to the service over the next five years. With $506 million in annual revenue last year, that’s roughly $5 million to $10 million for the offering each year.
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