With Netflix already accounting for 37% of all peak Internet traffic in the US, it has become a serious threat not only to cable companies but to all traditional linear broadcast networks. But if Netflix's CEO Reed Hastings is right, it's going to more a case of "if you can't beat them, join them" for these traditional media outlets.
Hastings predicts that in 10 to 20 years, all television will be on the Internet, and most will use the on-demand model. Speaking to Jim Cramer from CNBC, Hastings says that even sports networks, expected to be the last hold-out for the linear broadcasting model due to the need to broadcast live sports, will be on-demand.
“All the current linear networks will go to on-demand,” says Hastings, also explaining that this would be a great thing for audiences to allow them to watch any game on any device they choose.
Hastings also offered an insight into how Netflix turns user data into success.
“We are just a learning machine. Every time we put out a new show, we are analysing it, figuring out what worked and what didn’t so we get better next time,” he said.
