Netflix, Inc. (NASDAQ:NFLX) will look much similar to an ordinary cable channel for the first time after the company entered into deals with three cable companies. Under the deal, all the three companies, RCN, Grande Communications and Atlantic Broadband, will add Netflix as an app in their set-top boxes.
TiVO box needed for viewing Netflix
Subscribers in the United States will be able to watch Netflix, Inc. (NASDAQ:NFLX) shows on their television now instead of on tablets, PCs and phones. The video streaming company will get the subscriber base of around 500,000 from all three cable firms, and that number will likely further increase in the future with the addition of more subscribers.
Subscribers must have a TiVo box to access the service. Netflix said that to help customers, it is in discussion with some content partners to allow streaming on cable boxes. According to executives, all three cable companies will be able to offer Netflix content to their subscribers starting Monday.
“We’re making Netflix a channel on our lineup and in our channel guides,” said David Isenberg, chief marketing officer for Atlantic Broadband, who added that now watching Netflix, Inc. (NASDAQ:NFLX) becomes as easy as watching any other channel. Isenberg added that if the user is an RCN customer in the D.C. area, then he or she can watch Netflix on channel 450.
Not many details known
The terms of the agreement were not disclosed by company officials. Of the three providers, RCN is the biggest, with 350,000 subscribers in Washington, Chicago, Philadelphia and other cities, while Atlantic has 230,000 customers in several Eastern states, and Grande is enjoyed by 140,000 customers in Texas.
Recently Netflix, Inc. (NASDAQ:NFLX) stated that it will increase its price by $1 or $2 per month, but if the new FCC rule comes into effect, then prices could go even higher. Tom Wheeler, Chairman of the FCC conveyed new rules to other commissioners related to “net neutrality,” which implies that all web traffic should be treated equally. If the new rules are applied, then Internet service providers like Verizon Communications Inc. (NYSE:VZ), AT&T Inc. (NYSE:T) and Time Warner Cable Inc (NYSE:TWX) will earn fees from companies who want to deliver faster content to their customers.