Netflix NFLX has recently initiated the “Netflix Recommended TV” program to aid Smart TV buyers. The company has already selected a number of TV sets that complement Netflix’s streaming video service.
The select range comes from LG, Sony Corp. SNE, TCL, Hisense and Insignia. Netflix has been partnering with these companies to develop more efficient and easy-to-use devices. The TVs endorsed by Netflix will have a logo ‘Netflix Recommended TV’ at retail outlets.
At present, the company recommends the 4K UHD TV range from LG that comes with web OS 2.0, Android TV from Sony and the Roku TV range from HiSense, TCL and Insignia. The television providers have already started marketing their products with Netflix logo. Netflix has selected these devices based on their superior software interface and other useful features. Sony and Roku televisions have features like Instant On and Netflix buttons on remote while devices from LG come with special optimizations that enable a speedier launch of streaming apps. The software interfaces in all these headsets are advanced enough to allow easy toggle between live television and streaming services.
This move is intended to solidify Netflix’s position in the video streaming market. Netflix is the leading provider in the industry, but other big players are also joining the fray. Amazon’s AMZN Instant Video and Hulu have already gained in the video streaming industry.
Additionally, tech bellwether, Apple AAPL is also planning to enter the streaming services market through its revamped set-top box, Apple TV that is scheduled to be launched in June this year. Apple is in talks with television programmers to offer a trimmed down package of TV networks. This streaming service would have about 25 channels by broadcasters like ABC, CBS Corp, 21st Century Fox Inc etc. While Netflix holds the dominant position, the ‘Skinny Bundle’ packages from Apple can pose a threat.
We believe that collaborations with smart TV providers can become a long-term growth driver for this Zacks Rank #3 (Hold) stock and might even enable it to expand its share despite stiff competition.
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