Netflix Pursues Cable-TV Deals

Apparently, Netflix is in talks with several US pay-television providers including Comcast and Suddenlink Communications to make its online video service available as an app on their set-top boxes.

A deal would mark the online video service's first such tie-up with a US cable provider and would come after a similar agreement it recently announced with UK cable operator Virgin Media. The talks are in early stages and no deal is imminent. A hangup in the talks with at least two operators is that Netflix is insisting that they also take on its special technology designed to improve the delivery of its streaming video, people familiar with the matter say. The technology is part of its Open Connect program and consists of special servers Netflix wants to connect directly into broadband providers' networks. Netflix believes the technology is critical to make sure its service provides the best quality to viewers, the people say. So far, Internet providers Comcast, Time Warner Cable, AT&T and Verizon Communications have declined to use the technology, concerned that such an arrangement could lead other online services to ask for special treatment, the people familiar with the matter say. The Internet providers argue their broadband networks are fully capable of handling Netflix traffic, the people say.