Netflix's Competitors Are Taking an Unlikely Step to Combat the Streaming Service

If you can't beat 'em, join 'em. That's the mantra that many companies have been implementing in [...]

If you can't beat 'em, join 'em. That's the mantra that many companies have been implementing in order to combat the booming success of Netflix.

Companies such as T-Mobile have launched bundle packages to offer a standard Netflix subscription along with a family-plan mobile service. From T-Mobile's description of the deal, it sounds as if the company will be paying close to full price for the Netflix subscription.

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As for the nation's fifth-largest cable provider, Optimum, the company is making its own Netflix push to get new customers. Optimum is offering the new Triple Play option which includes phone, cable and internet. As part of a promotion for the deal, Optimum is paying for a year of Netflix.

Netflix was regarded as an enemy by movie theater chains and many cable providers like Optimum for years, however, the tide has turned. Companies are now trying to team up with streaming service. Currently, more than a dozen U.S. pay-TV providers offer easy access to Netflix, with more on the way, according to The Motley Fool.

Historically, cable companies offered HBO or Showtime to entice new subscribers. However, there is a major difference between those premium channels and Netflix.

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Because Pay-TV channels like HBO or Showtime were add-ons to traditional cable packages, customers weren't able to enjoy a premium network without subscribing to cable first. Therefore, the services were complementary. Netflix's model is in direct contrast as you don't need to pay $100/month for a cable subscription to stream it.

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