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Report: Netflix in Joint Marketing Talks With Deutsche Telekom

20 Jun, 2014 By: Erik Gruenwedel

Talks with Germany’s largest telecom service are at the advanced stage despite the apparent conflict with latter’s own over-the-top video service

Netflix reportedly is in advanced talks with Deutsche Telekom regarding a joint marketing campaign when the subscription streaming pioneer launches service in the country by the end of the year.

Details about what the marketing effort with Germany’s largest telecom operator might involve were not disclosed, according to Manager-Magazin.de, which cited sources familiar with the situation.

Netflix, which has announced plans to launch service in France, Germany, Spain and Belgium later this year, is also in discussions with other telecoms in the country, according to the report.

Germany has the highest number of broadband households in Europe with more than 21 million.

Combined with reported interest by Britain’s Vodafone to partner with Netflix underscores more of an open mind about Netflix among some European multichannel video program distributors. By comparison, most U.S.-based MVPDs consider Netflix a threat to the traditional bundled channel subscription business.

Interestingly, Deutsche Telekom, which is Germany’s largest telecom operator, in 2006 launched its own over-the-top video service, dubbed “Entertain.” At the end of 2012 the service had more than 2 million subscribers.

“Entertain” features recommendation software, mobile phone remote control functionality and a catalog of 20,000 movies, including 3,000 in high-definition. The service also had 333,000 subs in Croatia and 312,000 subs in Hungary at the end of 2012.

“Tomorrow’s television is multifunctional, networked and interactive,” Niek Jan van Damme, member of Deutsche Telekom’s management team, said in a statement on the company’s website.

A Netflix spokesperson was not immediately available for comment.

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