Netflix, Inc. (NASDAQ:NFLX) shares were up 1.28% to $97.91 on Tuesday but gave back 0.55% in after-hours trading. Netflix reached an agreement with Comcast to allow its service on the X1 platform, indicating a truce between the streaming company and the cable provider.
Netflix is a provider of Internet television network wherein subscribers can watch original series, documentaries and feature films in Internet-connected screen. Comcast is an American multinational mass media company and is the largest broadcasting and largest cable television company in the world by revenue.
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, said the companies in a statement.
This integration is set to be in place later this year, promising more revenue streams for both Netflix and Comcast. This was seen as a huge turnaround since the companies used to be bitter rivals in the past, battling over market share. This rivalry started in 2010 when Comcast and Blockbuster competed directly with Netflix’s DVD rental component. Later on in 2014, Comcast forced Netflix to pay a fee to have its shows on the cable network, sparking debates on net neutrality.
Some analysts see this as Comcast waving the white flag, as the cable company has seen dwindling subscriptions over the past years while streaming services get a larger share of the market. Still, it’s surprising how the pop in Netflix shares seemed short-lived, possibly as most customers already have a subscription to both services so new accounts won’t see such a huge bump higher. Besides, the company already has existing deals with Apple, Roku, and Google Chromecast. Apart from that, Netflix recently suffered a downgrade from some stock analysts.
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