April Ruciglliano
The future of Netflix was established late last week when Comcast and Netflix went into talks about paying for broadband for better delivery. Millions of customers will be affected by the deals being negotiated between Comcast and Netflix, and will set a standard for how the industry is to evolve from this point. Now it is looking like a similar deal will need to be made with other broadband providers such as AT&T and Verizon as Netflix looks to solidify its place in the industry. The question that is raised by these deals being made remains; where does Netflix go from here?
Comcast and Netflix
Comcast and Netflix had entered into talks about paying for broadband so that Netflix customers could get better streaming movies faster. A deal was reached between the two companies that would allow Netflix to stream on Comcast’s broadband to Comcast customers and will include HBO and other premium network shows. Comcast has discussed how its own subscribers would benefit from the increased speed and quality by combining services of the two companies. On Sunday the talks between Comcast and Netflix became permanent, as Netflix will now pay Comcast for use of the broadband and the two companies will begin providing customers with faster streaming and better programming availability. This deal between Comcast and Netflix is quickly becoming the model and precedent that will be compared to as other broadband providers begin looking to join the ranks.
Netflix and AT&T and Verizon![netflix]()
The deal that Netflix made with Comcast will most likely need to be mirrored with the other communications companies in order to service all of Netflix’s customer basis and make programming available beyond their initial subscribers. Both AT&T and Verizon are excited for the would be deals that would be made between them and Netflix. The differences between how Netflix streams currently and how it will have to stream if deals between AT&T and Verizon can be negotiated out will have to change. Currently Netflix streams through a third party company, a process that has been condemned by both companies who want Netflix to stream via the services that Netflix would be paying for.
AT&T has commented on how Netflix subscribers would be able to take advantage of AT&T’s better established broadband and be able to experience better quality with faster results. Similarly, Verizon has also commented on how the overall subscribers would benefit from faster broadband and FiOS speeds. The ability to set up direct access would help customers from having to deal with lagging connectivity problems. From all of these negotiations and deals on the table for Netflix and various broadband providers, it is the customers that will see the benefits from all of this, both from Netflix and the broadband companies.
How has this affected Netflix so far?
Netflix stock closed yesterday at $447 dollars per share. That is a 3 1/2 percent jump. The combination of the services of the broadband providers and the streaming of shows and movies by Netflix boosted the stock prices. It is an all around win, as all companies involved thus far have seen a slight jump in their stock prices. This comes at a time in the U.S. economy when the stock market has been lagging on its own, in competition with the Asian markets. The internet streaming that has been born out of the death of the video renting outlets, have given a rise to the popularity. The company has not turned down any talks or opportunities to talk with other ISP companies, because Netflix is committed to providing the best service as possible to its customer base. Netflix is on the rise, again, and looks to be a very promising stock as it is quickly approaching the $450 dollar per share mark.
Of all the companies involved, Netflix has remained focused on the service it is and will be providing. By linking up with well established broadband providers, Netflix is looking to throw itself into the same mix as a trusted industry leader.
The future of Netflix is bright. The teaming up with the many broadband providers is enabling the company to provide its customers as well as the customers of the broadband companies with a better and more timely product. As the industry begins to evolve the companies will be developing new quality and services at reasonable rates for their customers. The mixing of subscribers whether it be with Netflix, Comcast, AT&T, Verizon, or whomever, will create industry stability and profit. This mixing will allow for better programming and streaming abilities to be shared and available at high speed to any subscriber no matter the provider. The future of Netflix and the partnerships it is looking to establish are quickly becoming the future of the industry, and the future looks good!
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