Netflix, the world's largest subscription streaming service clearly wants an even bigger slice of the pie. Today, they were reportedly in negotiations with Comcast and Suddenlink Communications to do just that.
Currently, Netflix streams TV shows and movies to users over the internet using a multitude of hardware devices. This potential deal would take Netflix from third party devices like game consoles and Apple TV and move it to cable boxes as an individual app.
Up until this point, Netflix and the cable industry have always been regarded as rivals. Due to ever increasing cable bills as seen by consumers, Netflix is often viewed as a viable and cheaper alternative to network television and therefore, direct competition.
One major issue that is affecting potential partnerships is in the area of content delivery. Netflix has in its arsenal a program called 'Open Connect', which helps deliver high quality, high speed content to its users. In order to continue to ensure the high standards they have set for customers, Netflix wants the internet providers to use their servers. So far, the answer has been no.
Although Netflix has been met with quite a bit of resistance thus far, the idea for merging content is not something new. They have already made similar deals with companies in the U.K. and Sweden, including Virgin Media and Com Hem.
There are also several set top boxes from DirecTV and Verizon's FiOS that are now connecting to the internet to access apps like Youtube. Of course, neither company has inked a deal with Netflix, but the idea is no longer that far fatched.