Netflix has agreed to pay Comcast for the ability to stream movies and TV shows to Comcast customers, according to The Wall Street Journal.
Netflix originally wanted Comcast to connect to its video distribution network free of charge, but Comcast wanted a fee for connecting to Netflix servers, since the streaming service will bring a heavy amount of traffic. This multi-year deal ensures that Netflix can stream to Comcast customers directly.
The deal was struck after Netflix CEO Reed Hastings met with Comcast CEO Brian Roberts several times to discuss streaming speeds. Netflix speeds had deteriorated by 27% last October for Comcast customers.
Now, Netflix will be able to stream content to Comast customers smoothly and with fast streaming speeds. The amount Netflix has to pay wasn’t disclosed, nor were the exact terms of when this plan begins.
You can read the company’s press release below:
Comcast And Netflix Team Up To Provide Customers Excellent User Experience
PHILADELPHIA and LOS GATOS, Calif., Feb. 23, 2014;/PRNewswire/ — Comcast Corporation (Nasdaq: CMCSA, CMCSK) and Netflix, Inc. (Nasdaq: NFLX) today announced a mutually beneficial interconnection agreement that will provide Comcast’s U.S. broadband customers with a high-quality Netflix video experience for years to come. Working collaboratively over many months, the companies have established a more direct connection between Netflix and Comcast, similar to other networks, that’s already delivering an even better user experience to consumers, while also allowing for future growth in Netflix traffic. Netflix receives no preferential network treatment under the multi-year agreement, terms of which are not being disclosed.
About Comcast Corporation
Comcast Corporation (Nasdaq: CMCSA, CMCSK) is a global media and technology company with two primary businesses, Comcast Cable and NBCUniversal. Comcast Cable is the nation’s largest video, high-speed Internet and phone provider to residential customers under the XFINITY brand and also provides these services to businesses. NBCUniversal operates 30 news, entertainment and sports cable networks, the NBC and Telemundo broadcast networks, television production operations, television station groups, Universal Pictures and Universal Parks and Resorts. Visit www.comcastcorporation.com for more information.
About Netflix, Inc.
Netflix is the world’s leading Internet television network with over 44 million members in 41 countries enjoying more than one billion hours of TV shows and movies per month, including original series. For one low monthly price, Netflix members can watch as much as they want, anytime, anywhere, on nearly any Internet-connected screen. Members can play, pause and resume watching, all without commercials or commitments.
CONTACT: Comcast: Charlie Douglas, (215) 531-3296, [email protected], Netflix: Joris Evers, (408) 658-0980,[email protected]