Netflix shares fluxuated after Comcast deal

By Marcina Zaccaria ,

Netflix shares showed fluctuation after their deal with Comcast was announced.

Netflix and Comcast made an agreement to provide a more direct connection to allow more consumers better access for streaming movies and television. Netflix agreed to pay Comcast Corp. for faster speeds, according to Reuters.

Netflix is expecting increased growth opportunities as more consumers have access to their products.

Citigroup analyst Mark May said he wasn’t sure how the deal between Netflix and Comcast would work out. May gave Netflix a “Neutral” rating, according to the Associated Press. May believes that the deal is important for broadband service providers, and could serve as precedent for future future deals. Other agreements remain in the works, including a deal with Time Warner.

Netflix had a stellar 33 million streaming subscribers last year. With Comcast providing the higher internet speeds, fans of movies and television shows should see less buffering. In terms of ISPs, Comcast is one of the most largest providers, with 27 percent of all U.S. broadband subscribers as customers.

Image: Wikimedia Commons

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