Netflix, Inc. (NASDAQ:NFLX) entered into a deal with Virgin media to offer its subscription video service on Virgin Media Inc (NASDAQ:VMED)’s cable system in the United Kingdom. Virgin media will roll over its facility for the first time to 40,000 customers in the United Kingdom who use TiVo Inc set top boxes, as per the statement.Netflix

Later this year, Virgin media, which was bought by John Malone’s Liberty Global PLC, will provide features to all the 1.7 million TiVo users, enabling them to enjoy Netflix content.

Ground-breaking deal

The deal is the first of its kind where a web-related product is made available by a pay TV provider, says a report from Bloomberg. Lately, Pay TV operators are finding it hard to retain the viewers as an increasing number of users are shifting to laptops, tablets, or even smartphones to watch TV.

According to Michael Pachter, an analyst with Wedbush securities, it is a huge win for Netflix, Inc. (NASDAQ:NFLX). He said, “Cable sees Netflix as a possible problem for them, an alternative to cable. This is an acknowledgement by Virgin that its customers want that type of service as well.”

Steve Wymer, a spokesman for TiVo, said that for the first time ever, Netflix, Inc. (NASDAQ:NFLX) has been added to an operator box. He said that it is a huge deal, primarily if it opens the gate for operators worldwide to integrate and stream the top content.

Netflix to benefit greatly

Netflix, Inc. (NASDAQ:NFLX) has leaped ahead many of its peers and has diminished the line between pay TV and web streaming content service providers like Amazon.com Inc’s UK based Love film. The new feature of integrating Netflix shows with the pay TV will enable customers to browse through the Netflix programs on the same menu where they search for the pay-TV programs.

Dana Strong, Virgin Media’s chief operating officer, said that the cable company is delighted to offer another innovative service to the millions of Virgin media homes.

Virgin Media Inc (NASDAQ:VMED) is one of the dominating cable networks in the UK, with a customer base of 3.77 million at the end of the June. Around 44 percent of total customers use set top boxes from San Jose, California based TiVo.

 Gareth Mead, a Virgin Media spokesman, said that now if the viewer is searching for shows featuring actor Kevin spacey, he or she will be able to browse “The Usual suspects” from Virgin Movies and “House of Cards” on the same menu.