Comcast agreed to integrate the Netflix service into some of its upgraded cable boxes that are due out by year's end, the two former rivals said on Tuesday.
The partnership is seen as a win for Netflix, which is available on Apple TV, Roku and video game devices but has been trying to work its way into as many traditional cable boxes as possible so that consumers won't need to juggle multiple devices.
Shares of Netflix, in fact, had been trending lower until Recode's Kara Swisher broke the news, then the stock shot higher on strong volume. Shares of Comcast, though, have been lower all day and didn't budge on the Netflix news.
"Comcast and Netflix have reached an agreement to incorporate Netflix into X1, providing seamless access to the great content offered by both companies. We have much work to do before the service will be available to consumers later this year. We'll provide more details at that time," the companies said in a joint statement.
Comcast's X1 is used by about 35 percent of its customers. Its built-in DVR allows for the recording of six shows simultaneously, it comes with a voice-activated remote control and it allows for downloading of shows for watching on mobile devices.
Netflix and Comcast wouldn't reveal the economics of their upcoming partnership, though it likely involves Netflix making payments to Comcast, and some sort of billing arrangement for consumers might need to be worked out for customers who are new to one or both services.
Netflix has similar relationships with Atlantic Broadband, Grande Communications and Suddenlink Communications.