John Malone’s Liberty Global to Integrate Netflix Worldwide

Liberty Global (LBTYA.O), the worldwide telecommunications company controlled by American tycoon John Malone, said on Wednesday it has struck a deal to offer Netflix (NFLX.O) to all its customers directly via cable set-top boxes.

The new deal follows the launch of Netflix on Liberty Global-owned Virgin Media’s TiVo platform back in 2013 – the same year that Liberty acquired the United Kingdom pay TV provider.

The Netherlands will be the first Liberty Global territory to launch Netflix, with the company aiming for a full roll-out through 2017.

“This deal will provide even more freedom to our subscribers – allowing them to access a goldmine of fantastic TV and films at the click of a button, fully integrated into their usual TV viewing set-up”, said Liberty Global CEO, Mike Fries.

He said that neither the move by Liberty Media to buy Formula One nor the Netflix deal should be taken as evidence Liberty Global won’t continue to acquire content itself.

Netflix used the annual IBC trade show in Amsterdam last week to once again talk up its desire to work with telcos to distribute its content.

And in February, after interviewing executives “across the pay-TV value chain”, IHS Technology Research Director Ted Hall said: “Many of the operators working with Netflix have seen customer satisfaction ratings improve under the partnerships, which have helped foster positive operational performances”. The functionality will likely be of interest to Netflix subscribers whose children give them scant access to game consoles that have the Netflix app or whose televisions are not equipped with native Netflix apps since smaller devices already have access to a wide range of equivalent free apps. New customers will be able to sign up via the app on their TV and begin watching immediately.

“This secures Liberty Global’s place in the pay TV ecosystem”, said Macquarie Capital analyst Amy Yong. “This deal will provide even more freedom to our subscribers – allowing them to access a goldmine of fantastic TV and films at the click of a button, fully integrated into their usual TV viewing set-up”, Fries said in a statement. Liberty Global has 29 million customers who subscribe to its television, broadband internet and telephony services.

Existing Netflix customers will be able to log in when the app becomes available on Liberty Global’s digital TV platforms. Liberty Global also serves 11 million mobile subscribers and offer WiFi service across seven million access points.