Netflix Strikes A Deal With Comcast For Direct Broadband Access

After a lot of talk and flirtation, Netflix has finally succumbed to Comcast’s attractive broadband options and decided to pay up for direct access. From Deadline:

Comcast had previously denied Netflix’s request to connect to its broadband network free of charge, sending Netflix users’ streaming content through third party internet providers to access Comcast’s network. Customer streaming speeds suffered, dropping by 27% since October.

Per WSJ, Netflix CEO Reed Hastings and Comcast CEO Brian Roberts worked out a long-term “paid peering” deal at last month’s CES in an agreement that could mean more spending for Netflix as other broadband providers including AT&T, Verizon, and new Comcast acquisitionTime Warner Cable also hold out for payment.

This comes hot on the heels of Comcast’s acquisition of Time Warner, which you might remember we called bad news for Netflix. Well the news just got a little better for both parties, but what does this mean for the customers?

We know that Netflix is testing raised prices for different tiers of service, so could this expedite the raise of subscription costs for users?

(Via Deadline)