Louisiana subscribers of the online video streaming service Netflix, and customers of Comcast will find it interesting to learn that the two well-known companies recently announced a deal which will guarantee that movies, TV shows and other shows on Netflix will be smoothly streamed for their customers.
Louisiana residents may already be aware that Comcast is a TV and Internet service provider. Reports indicate that in an effort to decrease strain on its networks, and to allow the smooth transmission of its content, Comcast worked with Netflix to negotiate a structured deal. According to a research firm, presently Netflix has over 30 million subscribers, and during peak hours the company accounts for nearly a third all the Internet traffic on networks.
This particular deal between the two apparently took months to reach, and even though the companies have not revealed the exact terms of their deal, many people, including investors, are likely interested in learning how this deal will impact Netflix and whether or not costs will trickle down to customers. Nevertheless, this deal may have potentially paved the way for other providers to consider similar agreements.
In addition to this recent deal with Netflix, Louisiana residents may be familiar with another recent announcement that Comcast is to acquire Time Warner Cable for a little over $42 billion in stock options.
In a competitive business market, negotiations and deals are constantly being made and announced. Drafting such agreements can take many months, and more than likely require close examination of legal language in the agreements to minimize the need for business litigation. Thus, a business law firm familiar with such agreements may be instrumental in making a business deal successful.
Source: NPR, “Netflix Reaches Streaming Deal With Comcast,” Feb. 24, 2014
