Will Facebook and Netflix be yet another corporate energy couple? According to the Washington Post, Netflix CEO Reed Hastings is now on the panel of Facebook, which indicates a major partnership. Along with a number of other executive luminaries, Facebook seems to be that much closer to total control. Article resource - Netflix CEO Hastings joins Facebook corporate board by Newsytype.com.
Good reasons for a relationship
A relationship between Netflix and Facebook is a win-win for the two corporations. Many sources suggest there are a lot of reasons for the alliance to turn out to be good news. There have been some film studies that have tried to stay away from going through Netflix by going and attempting to make offers with Facebook directly including Warner Bros., reports CNet. A Facebook alliance will turn out to be one of the best moves Netflix makes. It could help the company stay on top in the end.
If Netflix does not get access to the Facebook database, then Facebook will sure get access to Netflix's database. Several Netflix users might be more interested in using Facebook credits if they don't already which will give Facebook and CEO Mark Zuckerberg more money. With only a 1.7 percent increase in May in Facebook's user base, there was not as much growth as normal which means that the company could use more users.
How the businesses have been doing
Zuckerberg is really excited about the new relationship. Partnering with the CEO of one of the most successful internet loading video corporations, Reed Hastings is always something to look forward to.
Reed is an entrepreneur and technologist who have led Netflix to transform the way people watch movies and TV," said Zuckerberg. "He has built a culture of continuous, rapid innovation.
There will turn out to be a lot of progress, as reported by Facebook investor Microsoft board Hastings.
Facebook is propelling a fundamental change in how people connect with each other and share all kinds of content," Hastings said. "I'm looking forward to working with them.
The problem of online loading needs to turn out to be solved
Netflix.com utilizes a fifth of the traffic in the U.S. during peak internet use periods. This is because of the streaming information individuals want to view. The Washington Post reports that the telecom industry does not lose the fact. Hastings' idea is an enormous threat to many different studios. On top of that, there are several concerns ISPs that manage bandwidth have.
Netflix has more than 20 million subscribers and remains wildly popular. This poses a threat to cable and satellite providers whose outdated price models are fast becoming obsolete. Netflix will have an even greater influence with this energy with Facebook.
No more Winklevoss suit
UPI reports that Cameron and Tyler Winklevoss, who claimed in the courtroom previously that Mark Zuckerberg from Facebook stole the idea for Facebook from them, have dropped their challenge of a $65 million settlement with Facebook that could have gone to the U.S. Supreme Court. In 2008, the Winklevoss twins were given a settlement of cash and stock. They continued to pursue an additional $200 million from Facebook in a suit though.
The $65 million settlement would continue to turn out to be that way which was what the 9th U.S. Circuit Court of Appeals decided. A claim that Zuckerberg's legal team did not reveal instant messages necessary in litigation is the only suit between Winklevoss twins and Facebook till open.
Figuring out the connection between all the companies
Washington Post on merger
Washington Post on Netflix vs. telecoms