Netflix Signs Agreement With Comcast

netflix comcast

On Sunday, Netflix signed an agreement to pay Comcast, one of the largest broadband internet services in the US, to air their videos, shows, and movies for Comcast customers. This is the first time the movie site signed an agreement with the internet provider. The announcement of the deal came on Sunday. The internet service will now ensure that people connect to the movies directly at more reliable and faster speed. The intricate aspects on streaming agreement were not revealed. In the weeks to come, the agreement will be in full effect, and Comcast will stream videos directly to their customers. However, the technical details on Netflix compensating for direct connection were not released.

Earlier this month, Comcast declared that the company is planning to pay the second largest cable provider company, Time Warner Cable $45 billion.  Time Warner Cable has around 11 million broadband customers. If they merge together, they can make 38 percent of the cable internet market, with more than 32 million subscribers, which is twice the customer of AT&T. Moreover, the movie streaming site has an estimated 33 million customers, and with market merger of $26 billion, it receives one-third of North American internet traffic from cable. According to the reports, prior to the deal, Netflix used different mediators in between to stream their content through Comcast with not so productive results, and more than 25 percent subscribers declined due to speed issues. The agreement between Comcast and Netflix now will give best streaming results at rapid speed leading to enhanced customer satisfaction.

The deal between the movie stream and the provider company was in the process long before the announcement of Time Warner Cable merger. In January, the chief executive of Comcast, Brian L. Roberts, and the chief executive of Netflix, Reed Hastings, along with team of engineers, from both companies met for the agreement in Las Vegas. Craig Aaron, the critic of the Comcast-Time Warner Cable merger, president of the customer agency Free Press, said the streaming agreement should prevent the internet provider Comcast from expanding, because consumers are only paying without knowing the intricate details on all aspects of the deals. The multiyear agreement between the two companies was announced without detailing on their terms.  All those consumer complaints on Comcast about streaming will now ease the access of movies efficiently.

According to the industry researchers, Netflix now unites with Google Inc. and Facebook. Both, Google, and Facebook already compensate internet providers for their content access. The deal allows the providers to earn million in fees from the content that is highly used by subscribers on network, TV, programs on tablets, computers, and other media devices. In the long run, the company will be making highest revenues and will single out those independent companies such as Cogent. The mergers are a threat to the independent providers. The internet with such mergers becomes more efficient, the monopoly of the industry creates less competition. According to the reports, many companies will be out of service very soon; this certainly will make powerful networks even more authoritative on providing service. Netflix signed an agreement with the internet provider Comcast for streaming partnership.

By Iqra Amjad

Sources:
Bloomberg
Fox News
New York Times
Washington Post

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