Please ensure Javascript is enabled for purposes of website accessibility

Netflix Pays Up

By Chris Hill – Feb 24, 2014 at 5:51PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Netflix is ponying up cash to Comcast to ensure smooth streaming of its content. Is this the beginning of an expensive trend?

Netflix (NFLX -0.41%) has agreed to pay Comcast (CMCSA -0.35%) an undisclosed sum of money to ensure its streaming video runs smoothly on the company's network. Many are looking at the deal as a precedent to future deals with other broadband providers. While many investors feared that this might be on the way and that it would have a negative impact on the stock, shares were actually up on the news.

In the lead segment from Monday's edition of Investor Beat, host Chris Hill and Motley Fool analysts Jason Moser and Taylor Muckerman discuss the deal, how it ultimately benefits consumers, and what it reveals about the consumer-focused management philosophy at Netflix.

Chris Hill has no position in any stocks mentioned. Jason Moser has no position in any stocks mentioned. Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Netflix. The Motley Fool owns shares of Netflix. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

Netflix Stock Quote
Netflix
NFLX
$319.10 (-0.41%) $-1.31
Comcast Stock Quote
Comcast
CMCSA
$35.73 (-0.35%) $0.12
Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
^DJI
$34,146.50 (-0.82%) $-283.38
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
^GSPC
$4,030.17 (-1.02%) $-41.53
NASDAQ Composite Index (Price Return) Stock Quote
NASDAQ Composite Index (Price Return)
^IXIC
$11,342.89 (-1.03%) $-118.61

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.