Netflix is reportedly in talks with U.S cable-TV providers to make its service available as an app on their set-top boxes.
According to sources of the Wall Street Journal, the Internet streaming media Company is in talks with Comcast and Suddenlink Communications for a deal similar to its partnership with Virgin Media in the U.K.
The idea of the Netflix partnering with a U.S cable-TV provider is likely to bridge the competition as consumers often choose the streaming service over cable services due to lower costs. Once the deal is finalized, it will be good news for cable TV customers as they will be able to access Netflix as an add-on on their existing cable TV service.
Aside from the partnership discussion, sources say that Netflix is also working on a new technology that will further improve its streaming service which means possible better quality once it is added in the set-top boxes. The technology is part of the Open Connect program that allows its users to connect directly through special servers provided by their Internet providers.
The Open Connect Program has been offered to Comcast, Time Warner, AT&T, and Verizon but all declined in fear of complaints from other consumers about special treatment. The program will provide faster Internet connection to Netflix users compared to non-users.
The talks between Netflix and the two U.S cable-TV providers are still on its beginning stage so it is too early to say if it will happen. One of the possible issues that may arise during the discussion is the possibility of the company using the app to offer its own pay-per-view video services to the consumers of its U.S partner thus affecting the latter’s own video service.
According to the Statistic Brain, Netflix has nearly 30 million subscribers in 40 countries and holds 30 percent of the U.S Internet traffic during peak hours. Comcast may need a little help with its number after losing 400,000 customers in 2012 due to competition with Netflix.
