During the recession, throngs of people cut their pricy cable bills and sought refuge in wallet-friendly streaming services, like Netflix. It’s no surprise that pay TV operators have been resistant toward over-the-top services, but as a sign of old TV embracing new TV, Virgin Media in the U.K. is piloting a program bundling Netflix with its cable service.
Using TiVo’s hardware, a hybrid set-top box for cable, and streaming services, Virgin will invite 40,000 customers to download the Netflix app and plans to roll out the option to 1.7 million customers with TiVo boxes by the end of 2013. Those partaking in the bundle will need a separate Netflix subscription. Analysts call the move a “win-win situation,” giving Virgin subscribers a broader range of content and helping Netflix gain traction in the U.K.