Following rumors that surfaced on Friday, Comcast and Netflix confirmed Sunday that they have forged a “mutually beneficial interconnection agreement” that will provide the MSO’s U.S. broadband subs with “a high-quality Netflix video experience for years to come.”
Comcast and Netflix didn’t announce financial terms of the multi-year deal, but a source confirmed a The Wall Street Journal report that Netflix has agreed to pay Comcast for this deeper, more direct access to its broadband customers. The WSJ said Netflix CEO Reed Hastings and Comcast CEO Brian Roberts had met on the subject in recent months and established the “framework” for the resulting deal during last month’s Consumer Electronics Show in Las Vegas.
According to a person close to the agreement, Netflix realized it needed a compromise to move forward with Comcast and put together an agreement that would improve the Netflix experience now while also providing a path toward future scale.
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