Comcast and Netflix have inked an agreement that will incorporate Netflix streaming content into Comcast’s X1 platform (set-top box), Recode reported, saying both companies confirmed the news. The companies said they have “much work to do before the service will be available to consumers later this year” and that they will provide more details at that time. No financial details were disclosed at this stage.
Sources said the deal to be on Comcast’s set-top box will be similar to the arrangement that Netflix has with smaller cable operators in the US and bigger ones across the globe. This means the Netflix app will be present on the X1 platform, for users to sign into, making content easier to access. Netflix also has deals with Apple, Roku and Google’s Chromecast, with its app offered on these internet TV services. It also is embedded in smart televisions.
A recent report by Morgan Stanley had raised this possibility of a Comcast deal, especially noting that it could benefit by getting a larger bounty from Netflix for adding subscribers. It would also help Comcast have a more competitive video offering to others, like Roku, Verizon and Dish, that have apps from services like Hulu and Netflix. For Netflix, the addition of new subscribers would be a big benefit and it would also put them closer to a wider range of consumers.
