Sunday, February 23, 2014
Netflix to Pay Comcast for Smoother Streaming
Netflix has agreed to pay Comcast to ensure that their movies and television shows stream smoothly to Netflix customers. Lately congestion in the internet has been a negative factor causing interruptions for customers trying to stream Netflix movies and TV shows. This deal will make Comcast the dominant provider of broadband in the U.S, especially after their purchase of Time Warner Cable. It took a while for Netflix to cave in and pay someone else for this service, but it will more than likely ensure their rising dominance as well. It is said that they are going to compensate the middlemen internet providers who were providing this service for Netflix before. This deal is huge for Netflix after they said that if providers don't interconnect with its servers its business and operating results could be adversely affected because of increased cost. The financial impact of this deal is still unclear and only time will tell if the effect will be great.http://online.wsj.com/news/articles/SB10001424052702304834704579401071892041790?mod=WSJ_hp_LEFTWhatsNewsCollection
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This is a big step for Netflix as a company. I think it is necessary for Netflix to take this step because it is important for companies, especially those of which are technology-based, to adapt to new technologies that will improve their services. Netflix has gained a tremendous following in a few short years and so I am interested to see what the company's next big step will be and if it will be a more noticeable change to consumers.
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