Netflix is exploring a broader shift that would bring traditional broadcast channels onto its streaming service, after building the model that helped weaken them in the first place. The company recently disclosed a deal with French media group TF1 that will give Netflix subscribers in France access to TF1's broadcast channels and its VOD content, including TF1, the country's most-watched TV channel.
The agreement is unprecedented for Netflix and will be used as a test case for similar deals with television providers in other countries. Netflix CEO Greg Peters told the Financial Times, "Our job is to bring more content to subscribers, and we will use every strategy available to us to do that." He added, "After the launch, we will examine the possibility of adding more traditional TV providers to our platform."
Peters also referred to Netflix's decision not to pursue a purchase of Roku, the streaming-device maker that operates two small streaming services and was acquired last week by Fox in a $22 billion deal. "We have a commitment to examine anything that could be relevant to our business. But at the end of the day, we're not in the hardware business. That would be quite a significant departure for us," he said. "The fact that we did not go after Roku is a strong indication that we do not want to change our strategy."