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Netflix used its earnings note to slam NBC over 'TV like God intended' comment

Jan 20, 2016, 03:08 IST

CEO of Netflix Reed Hastings attends the Allen & Co. annual conference at the Sun Valley Resort on July 11, 2013 in Sun Valley, Idaho. The resort is hosting corporate leaders for the 31st annual Allen & Co. media and technology conference where some of the wealthiest and most powerful executives in media, finance, politics and tech gather for weeklong meetings. Past attendees included Warren Buffett, Bill Gates and Mark Zuckerberg.Kevork Djansezian/Getty Images

There's a raging debate about what God intended for TV, thanks to the war brewing between Netflix and the cable networks.

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Last week, an NBC executive argued that Netflix users binge-watch the company's original shows and then return to their usual programs on the cable networks.

"Everyone goes back to watching TV like God intended," he said.

Netflix didn't comment on the report or God's intentions at the time, but made it clear in its Tuesday earnings report that it thinks NBC is extreme in its view.

Rather, Netflix argues that these companies should take the revenue its service gives them to make better content themselves:

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The growth of Netflix has created some anxiety among TV networks and calls to be fearful. Or, at the other extreme, an NBC executive recently said Internet TV is overblown and that linear TV is "TV like God intended." Our investors are not as sure of God's intentions for TV, and instead think that Internet TV is a fundamentally better entertainment experience that will gain share for many years. The challenge for traditional media companies, most of whom see the future pretty clearly, is to use the revenue from Netflix and other SVOD services to fund both great content and their own evolution into Internet TV networks. Seeso, BBC iPlayer, Hulu, CanalPlay, HBO Now, and CBS All Access are the beginnings of these efforts.

Netflix has certainly taken its own advice to heart. The company killed its fourth quarter earnings, and stock is up 9% after hours.

NOW WATCH: All the new Netflix shows you'll be binge-watching this year

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