Netflix Reportedly In Talks To Be A Set-Top App For Some Cable TV Providers

Most viewers currently watch the streaming TV service Netflix on a tablet, mobile device or on their TV's with the help of a connected so called "over-the-top" device. But that may change, if some current negotiations come to fruition.

The Wall Street Journal reports that Netflix is in discussion with several cable providers, including Comcast and Suddenlink, to have the Netflix app become a part of the cable operators Internet-enabled set-top boxes, such as the Comcast IP-Enabled Xfinity platform. That would enable cable customers to access Netflix programming in the same way that they watch traditional television programming or content they've recorded on their DVR.

There are still reportedly a number of potential hangups to work out, primarily Netflix's insistence on using its Open Connect streaming program to improve delivery of its service, which has recently expanded to include Ultra HD features. The WSJ report says Comcast insists that their current system is fully capable of delivering Netflix programming. The company also worries that other streaming services will ask for a similar deal in any future negotiations.

Another potential stumbling block (although it's not mentioned in the WSJ piece) is the issue of bandwidth caps. Comcast is one of the cable companies that has been conducting limited experiments where they impose a monthly cap on the amount of bandwidth allocated to individual subscribers. While the bandwidth is more than sufficient for the average user of email and the Web, viewing video can quickly eat up the monthly allotment. Presumably, Netflix is also insisting on their programming being exempt from being counted as part of subscribers monthly bandwidth allowance.

Last month, Liberty Global's Virgin Media made Netflix an app on its TiVo platform, effectively making the over-the-top content provider a part of its set-top based pay TV service rather than a competitor.