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Wednesday, July 6, 2016

Here is Why The Comcast-Netflix Partnership Is really a Win-Win Deal For Everybody

Yes, Netflix will shortly be offered on Comcast's X1 set-top bins.

News about the a couple of archnemesis striking a deal could be surprising to many, especially whoever has been following the episode unfold between them, but this is actually good news. A win-win circumstance, even.

Online streaming services just like Netflix and Hulu are slowly changing the sport for consumers who want quick access to great TV-style articles, so it's natural to get a cable TV provider just like Comcast to feel vulnerable (even slightly) by these kinds of presence. The convenience Netflix presents has given rise to be able to "cord cutters, " or customers that are discontinuing their cable TV subscription and only online streaming.

The move is focused on "providing seamless access for the great content offered simply by both companies, " the 2 groups announce in any joint statement. Details have yet being released and there remains "much work to do" ahead of the service becomes available to subscribers later in 2010. But the agreement is earning praise.

Suddenly choosing the Netflix app offered by way of a set-top box shows a classic case of symbiosis in the highly competitive market.

How a Deal Benefits Comcast

Away from Comcast's 22. 4 thousand video subscribers, more when compared to a third own the X1 set-top box from your company's Xfinity service. Comcast touts X1 because the "next generation" of satellite tv viewing because it has an interactive experience, unlike in which clunky cable box regarding old.

With Netflix up to speed the service, Comcast subscribers can simply go through the app to access articles. This strategy could help alleviate problems with cable TV subscribers coming from cutting the cord and deciding on online streaming for excellent.

But even if consumers do jump ship, Comcast could still benefit from these premium X1 set-top bins carrying the app.

This partnership with Netflix might also prove to the Federal government Communications Commission (FCC) in which Comcast is friendly to be able to competitors. FCC Chairman Tom Wheeler has long wanted satellite TV providers to give other services usage of their set-top box programs. The X1 therefore offers being a more level playing industry, where even rivals just like Netflix can maintain any presence.

How The Package Benefits Netflix

Comcast is without question Netflix's biggest partner but. The cable TV service provider earned $18. 8 billion in revenue inside the first quarter of 2016. With all the deal in place, Netflix would give rise to Comcast's earnings and, from the jawhorse, also take home an important slice of the income.

While Netflix has any user base of seventy eight million, it only raked in the revenue of $1. 8 billion through the same quarter. The buffering service is initially concentrating on 2. 5 million fresh members in Q2.

Because the X1 set-top box becomes appropriate for Netflix, that figure increase. Netflix will gain wider experience of an audience of concerning 7. 6 million.

In the long run, however, convenience and many high-quality content make this kind of deal a win-win situation above all for the customers.

Techsourcenetwork