Netflix will be paying Comcast in a bit to get smoother online video streaming. In an important development, Netflix has given a word that it won’t be treating their own video with preference when it comes to streaming. Comcast will be treating all the videos equally. This is known as net neutrality.
Comcast will be henceforth looking at all the traffic on the same level. The payment from Netflix to Comcast will make it certain that TV shows as well as the movies of the subscription service remain going on seamlessly.
But then does it, in any way, mean higher rates for the consumers? Most, probably, yes. Subscribers had stumbled upon hiccups when watching shows through Netflix. There won’t be any pauses due to the new deal that Netflix has done with Comcast.
The deal between Netflix and Comcast can be the harbinger for more such agreements to materialize. That could be between other service providers like AT&T and Verizon along with Netflix.
A deal between these two companies was struck on Sunday. However, neither Netflix nor Comcast brought out any details about the deal. But according to Wedbush Securities analyst Michael Pachter, the latest deal will make its presence felt to the consumers ‘one day’.
There has indeed been a conflict as to who should accept the costs of online video streaming – the internet service providers or the online streaming services. Should a company like Netflix be charged, that is reaping the huge benefits or should it be the broadband services, who charge their subscribers?
Pachter further added that Comcast will possibly be raising the price according to the market. And that will make Netflix to raise the bar which will eventually make an impact on the customers. Obviously, Netflix chose not to respond to the query.
Recently Comcast had given a nod to acquiring the Time Warner Cable Inc. for an estimated price of slightly above $45 billion.