Comcast deal won't lead to Netflix price hike
Rest easy, Netflix fans -- the online video service is unlikely to jack up costs following its big deal with Comcast to boost streaming speeds. But the partnership raises big questions about the future of Internet video.
The Comcast deal is novel in that it's the first time Netflix has had to pay an Internet service provider for direct access to its network. Netflix already connects directly for free with some smaller ISPs like Cablevision, as well as a number of international providers. Dan Rayburn, an analyst with Frost Sullivan, says the agreement will save money for Netflix, since it can now cut out the middlemen and deliver to Comcast directly. Other analysts are skeptical of that claim, but are still confident there won't be a big impact on consumers.
Comcast deal won't lead to Netflix price hike