Comcast Will Offer Netflix To Subscribers On The X1 Box

As the result of a new deal, Comcast's X1 subscribers will be able to access Netflix as easily as [...]

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As the result of a new deal, Comcast's X1 subscribers will be able to access Netflix as easily as they would with premium channels such as HBO.

Brian Roberts and Reed Hastings, the CEO's of Comcast and Netflix respectively, delivered a statement saying, "Comcast and Netflix have reached an agreement to incorporate Netflix into X1, providing seamless access to the great content offered by both companies. We have much work to do before the service will be available to consumers later this year. We'll provide more details at that time."

The new agreement will open the door to new opportunities for viewers who don't have television sets with a broadband-connection, or where people prefer not to change the input on their sets in order to watch Netflix shows such as House Of Cards or Orange Is The New Black. This new arrangement will allow Netflix to target the older demographics of the market, which is "a key area where Netflix remains under-penetrated," according to Benjamin Swinburne of Morgan Stanley.

Other pay TV distributors other than Comcast have also warmed up to the idea of providing Netflix to their subscribers. Tom Rutledge, Charter CEO, mentioned to investors in May that he is "'pursuing' efforts to integrate streaming services including the three leading ones into our [user interface] to make it seamless to the customer," according to Deadline. Rutledge also mentioned, "Most people who buy Netflix buy cable or satellite. It's another channel, a premium service - and an inexpensive one."

Most TV distributors, however, do not have the extensive history of discord that Comcast and Netflix have had with one another. "There was bad blood from a 2014 deal Netflix CEO Reed Hastings felt compelled to make that required his company to pay Comcast in order to feed programming directly to its broadband infrastructure - a key to offering smooth transmissions."

The two companies also butted heads when Comcast sought to make a deal to buy Time Warner Cable. Comcast eventually abandoned the deal after federal officials threatened to oppose the agreement. Other disagreements were also present when both companies debated the issues concerning "net neutrality" at the FCC, and its plan to allow independent manufacturers to sell cable set top boxes. Hastings and Roberts have clearly buried the hatchet on many of these issues in light of the new agreement for X1 to provide Netflix to subscribers.

Interestingly, Comcast is a part owner of Hulu, one of Netflix's biggest competitors in the streaming services market.

What do you think about this new deal with Comcast and Netflix?

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