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Netflix CEO predicts a "Gigabit to the home" in ten years

2011.05.04 11:12 by Daniela
Keywords: Netflix, video streaming, broadband

In the fourth quarter of the last year Netflix streaming surpassed DVDs rental. The company's CEO Reed Hastings explains why this couldn't happen earlier - because then they couldn't stream movies over 56K modems.

Using Moore's Law and improvements in bandwidth, Hastings has made some calculations about the future of broadband connections:

"We took out our spreadsheets and we figured we'd get 14 megabits/sec to the home by 2012, which turns out is about what we will get. If you drag it out to 2021, we will all have a gigabit to the home."

Hastings claims that streaming over cable set-top boxes or DVD players will allow faster quality upgrades, because these devices are not dependent on switching out boxes in everyone's home.

In order to answer whether Netflix can be considered as a threat to cable operators, CEO Hasting explained:

"We have consistently said that would not be profitable for us. It would start an Armageddon battle, and we would not emerge alive from that battle. So we are concentrating on our niche"

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