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Netflix and Comcast Sign Deal: Is 4K Streaming a Factor?
From the Buzz & Banter: To ensure users can get 4K consistently, ISPs will have to pave the way -- and that costs money.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO.

On Sunday, Comcast (NASDAQ:CMCSA) and Netflix (NASDAQ:NFLX) issued a press release with the curious title "Comcast and Netflix Team Up to Provide Customers Excellent User Experience."

The two companies are forming what they're calling a "mutually beneficial interconnection" to ensure that Comcast customers will have access to high-quality Netflix streams.

Though terms were not disclosed, the presumption is that Netflix is forking over some dollars to alleviate a slowdown in streaming speeds over Comcast's network.

You can see in the screen grab below (Comcast in Green, Google (NASDAQ:GOOG) fiber in purple for comparison) that Comcast users have seen a slowdown in recent months, which could be problematic for people binging on season two of House of Cards.


Click to enlarge

It's understandable that Comcast wants to get paid, as Netflix generates 32% of downstream Internet traffic in North America, according to Sandvine. I've held the opinion that Netflix's popularity with consumers would allow it to escape from being forced to make these kinds of deals, but that's out the window here because Netflix hasn't announced a price hike.

I suspect that the coming emergence of 4K streaming on Netflix Instant is a factor here, because we're talking about a massive increase in data traffic per stream -- possibly four to eight times that of a 1,080P stream.

And the way it works now, depending upon issues like the strength of your Internet connection to how many people are accessing the network simultaneously, you actually don't have any guarantee you can even reliably get 1080p.

To ensure users can get 4K consistently, the ISPs will have to pave the way, and I guess that costs money.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
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No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Netflix and Comcast Sign Deal: Is 4K Streaming a Factor?
From the Buzz & Banter: To ensure users can get 4K consistently, ISPs will have to pave the way -- and that costs money.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO.

On Sunday, Comcast (NASDAQ:CMCSA) and Netflix (NASDAQ:NFLX) issued a press release with the curious title "Comcast and Netflix Team Up to Provide Customers Excellent User Experience."

The two companies are forming what they're calling a "mutually beneficial interconnection" to ensure that Comcast customers will have access to high-quality Netflix streams.

Though terms were not disclosed, the presumption is that Netflix is forking over some dollars to alleviate a slowdown in streaming speeds over Comcast's network.

You can see in the screen grab below (Comcast in Green, Google (NASDAQ:GOOG) fiber in purple for comparison) that Comcast users have seen a slowdown in recent months, which could be problematic for people binging on season two of House of Cards.


Click to enlarge

It's understandable that Comcast wants to get paid, as Netflix generates 32% of downstream Internet traffic in North America, according to Sandvine. I've held the opinion that Netflix's popularity with consumers would allow it to escape from being forced to make these kinds of deals, but that's out the window here because Netflix hasn't announced a price hike.

I suspect that the coming emergence of 4K streaming on Netflix Instant is a factor here, because we're talking about a massive increase in data traffic per stream -- possibly four to eight times that of a 1,080P stream.

And the way it works now, depending upon issues like the strength of your Internet connection to how many people are accessing the network simultaneously, you actually don't have any guarantee you can even reliably get 1080p.

To ensure users can get 4K consistently, the ISPs will have to pave the way, and I guess that costs money.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Netflix and Comcast Sign Deal: Is 4K Streaming a Factor?
From the Buzz & Banter: To ensure users can get 4K consistently, ISPs will have to pave the way -- and that costs money.
Michael Comeau    

This article was originally posted on the Buzz & Banter where subscribers can follow over 30 professional traders as they share their ideas in real time. Want access to the Buzz plus unlimited market commentary? Click here to learn more about MVPRO.

On Sunday, Comcast (NASDAQ:CMCSA) and Netflix (NASDAQ:NFLX) issued a press release with the curious title "Comcast and Netflix Team Up to Provide Customers Excellent User Experience."

The two companies are forming what they're calling a "mutually beneficial interconnection" to ensure that Comcast customers will have access to high-quality Netflix streams.

Though terms were not disclosed, the presumption is that Netflix is forking over some dollars to alleviate a slowdown in streaming speeds over Comcast's network.

You can see in the screen grab below (Comcast in Green, Google (NASDAQ:GOOG) fiber in purple for comparison) that Comcast users have seen a slowdown in recent months, which could be problematic for people binging on season two of House of Cards.


Click to enlarge

It's understandable that Comcast wants to get paid, as Netflix generates 32% of downstream Internet traffic in North America, according to Sandvine. I've held the opinion that Netflix's popularity with consumers would allow it to escape from being forced to make these kinds of deals, but that's out the window here because Netflix hasn't announced a price hike.

I suspect that the coming emergence of 4K streaming on Netflix Instant is a factor here, because we're talking about a massive increase in data traffic per stream -- possibly four to eight times that of a 1,080P stream.

And the way it works now, depending upon issues like the strength of your Internet connection to how many people are accessing the network simultaneously, you actually don't have any guarantee you can even reliably get 1080p.

To ensure users can get 4K consistently, the ISPs will have to pave the way, and I guess that costs money.

Twitter: @MichaelComeau

Follow the markets all day every day with a FREE 14 day trial to Buzz & Banter. Over 30 professional traders share their ideas in real-time. Learn more.
< Previous
  • 1
Next >
No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
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