Commentary

Comcast And Netflix End Feud

Netflix and Comcast have had some very public squabbles in the last few years, but appear to be burying the hatchet. The companies said today that Comcast will soon make Netflix's app available on the X1 set-top box, according to Recode.

The move means that Comcast's cable subscribers who want to stream shows like "The Unbreakable Kimmy Schmidt" or "Orange is the New Black" to a TV screen won't need to use a separate device, like a Roku.

Netflix's deal with Comcast marks a dramatic shift for the companies, which spent the last several years battling each other over issues like data caps and net neutrality. Back in 2012, Netflix CEO Reed Hastings publicly complained that Comcast was deploying data caps in ways that disadvantaged streaming services. (Comcast has since revised its data cap program; it now imposes fairly generous caps of 1 TB a month in select markets.)

Two years ago, Netflix forged an interconnection deal with Comcast, which involved Netflix paying a fee to connect directly to Comcast's servers. Netflix, which said it agreed to the deal to alleviate complaints about choppy videos congestion, later complained to the Senate about the arrangement.

News of the companies' latest deal comes as the Federal Communications Commission is considering whether to issue revamped regulations regarding set-top boxes. Earlier this year, FCC Chairman Tom Wheeler proposed issuing rules that would enable Google, Amazon and other companies other than cable and satellite providers to develop boxes that can access pay-TV programs. Supporters of the proposal say it will allow people to purchase a single gadget that can access all types of video -- pay-TV as well as over-the-top online video.

Proponents appear to view Comcast's deal with Netflix as a step in the right direction.

“Yay, Comcast customers can now watch Netflix! Now what’s wrong with unlocking the box and letting consumers watch the rest of the Internet as well?" the advocacy group Consumer Video Choice Coalition said today in a statement. "Comcast once again proves consumer advocates’ point; consumers are hungry for new Internet streaming content and don’t want a gatekeeper box or gatekeeper app telling them what they can and can’t watch."

But cable providers have argued for months that new set-top box rules aren't needed, especially because more and more video is now available through apps. Several weeks ago, the cable industry proposed to the FCC that consumers should be able to "ditch the box" by accessing all programs via apps. As part of that proposal, cable companies offered to develop apps that would enable subscribers to view pay-TV content as well as over-the-top streams.

The FCC is still mulling the various proposals.

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