Oct 14 Netflix Inc is discussing with
several U.S. cable television operators the inclusion of its
streaming video service on their set-top boxes, a source said on
Monday, as shares of the video rental company rose 5 percent.
Netflix is in talks with companies including Comcast Corp
and Suddenlink Communications, said the person, who is
familiar with the discussions. The talks were first reported by
the Wall Street Journal.
A sticking point in discussions has been the direct
connection of the Netflix network to the cable systems - a
set-up that Netflix believes will offer consumers the best
Analysts said such video content deals with cable operators
have been anticipated. "I think these things are going to become
ubiquitous on television sets of the future," said Morningstar
analyst Michael Corty.
Nevertheless, he said shares of Netflix are "over-valued"
with most of the company's growth potential already priced into
Netflix shares were up $16.43 at $317.16 in midday trading
on the Nasdaq exchange.
Last month, two European cable companies -- Sweden's Com Hem
and Virgin Media in Britain -- struck deals to allow their
customers to access Netflix through Tivo set-top boxes.
Netflix Chief Financial Officer David Wells, speaking at a
Goldman Sachs investor conference last month, said that the
company was willing to strike similar deals with U.S. cable