Liberty's Malone says cable companies should create Netflix rival

Reuters

By Liana B. Baker

NEW YORK, Oct 10 (Reuters) - Cable pioneer John Malone saidon Thursday that cable companies should team up to create aNetflix-like rival that would deliver programming toconsumers over the Internet on a national basis.

Cable companies could "solve the problem" of highprogramming costs by acquiring content for a national,Internet-based service under one brand that cable companiescould then sell in a bundle with broadband, Malone said atLiberty Media Corp annual investor conference.

Malone, chairman of Liberty Media, used one example ofComcast Corp's Xfinity product one day being sharedwith the rest of the cable industry to become a national brand.This help the cable industry gain back market share fromsatellite and telecom competitors and also give a boost tosmaller cable companies which lack infrastructure a boost.

He added that Netflix chief executive Reed Hastingshas created a successful product is big enough to buy exclusivenational content at good prices, something the cable industryhas struggled with.

"The cable industry has been very slow ... which hascreated opportunity for the over the top guys," Malone said.

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