NEW YORK (TheStreet) -- Netflix (NFLX) is in negotiations with U.S. cable providers such as Comcast (CMCSA) and Time Warner (TWC) to integrate its streaming video service into their set-top boxes, according to The Wall Street Journal.
While Netflix already has two similar deals in Europe, this would mark the first with major U.S. cable companies, a relationship formerly seen as contentious.
Speaking at a Goldman Sachs conference in September, CFO David Wells commented on Netflix's willingness to explore partnerships with cable companies.
"We would love to reduce the friction to the end consumer and to be available via the existing device in the home which is the set-top box," he said.
Netflix shares are trading 4.8% higher to $315.33 as of 11:12 a.m. New York time. The company will report third-quarter earnings after the bell on October 21.
Time Warner Cable has declined to comment on the reports. At time of publication, neither Netflix nor Comcast had responded to requests for comment.
TheStreet Ratings team rates Netflix Inc as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate Netflix Inc (NFLX) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, premium valuation and generally higher debt management risk."