Netflix, Comcast Streaming Deal Detailed: What You Should Know About The Transaction

Good news Netflix fans! Thanks to a deal with Comcast binge watching your favorite TV shows or movies just got a lot easier. Comcast, perhaps America’s largest Internet provider has reached an agreement with the popular streaming service Netflix. The agreement basically states Netflix will pay Comcast for direct access to their millions of customers, which means the bugs, freezing and overall quality of Netflix videos will become a whole lot better!

What is the issue between Comcast and Netflix?

Well there is a little bit of debate on what the problem actually is. Associated Press reports that critics of Netflix suspect Comcast and its peers were deliberately slowing the popular video streaming service on purpose as a negotiation tactic aimed at extracting additional fees. While other analyst traced the slowdown to Netflix’s increasing viewership and the limited number of ports internet service providers built for customers to receive online content.

Essentially Netflix has been paying third-party vendors to deliver its videos to the doors of Comcast and other Internet providers. However Comcast and other Internet providers have their own streaming content coming and thus causes slower service for users. Comcast has now made Netflix its own path to deliver content to their customers, for a price of course.

How does the new transaction affect customers?

For Netflix subscribers relying on Comcast should already see less interruptions in video streaming over the network. Picture quality and performance should be improved. Although the collaboration wasn’t revealed until Sunday improvements were seen early Thursday.

Will Netflix Raise their prices as a result of the agreement?

No. Eventually the company will raise the $8 monthly subscription fee but not as an effect of the agreement with Comcast. While the terms haven’t been laid out completely it appears that Netflix is just reshuffling resources for video delivery. Meanwhile the company is playing with the idea of different pricing options for subscribers who want to simultaneously steam on more than one device. AP reports a plan allowing four simultaneous video streams is being tested at $12 a month, but these changes are months away.