Netflix and Comcast have recently announced that they will become partners and be sharing a platform in a move which should be beneficial for both companies as they are striving to attract new users.
Times have not been too good for Netflix recently. The Internet video service, which had been on a constant rise in terms of new users recently saw this trend come to a stop.
Following the third quarter number reports, Netflix revealed that not only had their new user numbers not increased, they had also not hit their predicted target by more than 30 percent.
Their situation is somewhat similar to that of Comcast, a company with which Netflix has been quite at odds in the past.
Comcast has been growing exponentially in the telecommunications department as the company is predicted to be amongst next year’s top United States competitors.
As Comcast will be joining forces and partnering up with Verizon, it will come to compete with the likes of Sprint and AT&T in the telecommunications area.
The new partnership with their former Netflix competitor could be seen as a move meant to raise their paid cable TV numbers which have been falling.
According to reports, after their 2007 peak year with 25 million registered users across the United States, Comcast has been registering a constant decrease in user numbers.
Netflix and Comcast announced their new partnership last week and according to Reed Hastings, the Netflix Co-Founder and CEO, the new relation should come to benefit users.
The two companies will now be sharing the X1 platform which, as stated by Hastings, will allow the two companies’ mutual users an easier access to both services.
The X1 platform will allow for an easier control of the services as remotes and inputs can be taken out of order as the users that possess subscriptions to both the cable service and Netflix will now be able to easily switch between the two.
The user will now be able to sign in with his or her Netflix account on the X1 platform and will as such get full control over both the Comcast channel offer and the Netflix database.
Besides allowing Netflix access to Comcast’s 20 million or so users, analysts also estimate that the partnership will account for about five million new subscribers for the internet video service.
The users who currently only possess Comcast subscription and are interested in Netflix will find it easier to sign up for the latter as they will be able to do so straight from the X1 platform.
Their billing fees will also be registered on the same Comcast bill as they will be added besides their monthly subscription.
As Comcast and Netflix have joined forces and the latter has also started releasing new original series, the partnership is hoped to be a beneficial one for both companies and users as it will allow for more shows and an easier access.
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