Netflix Spikes After News Comcast Will Put Service On Its X1 Platform

Shares of Netflix, Inc. NFLX were trading in negative territory Tuesday, but surged higher on heavy volume late morning. Investors and traders were reacting favorably to reports that the streaming video platform will be available on Comcast CorporationCMCSA's X1 platform.

Recode reached out to Comcast and Netflix for a statement. The pair confirmed they have reached an agreement to incorporate Netflix into X1 but "much work" is still ahead. Nevertheless, the service will be available "later this year" and the companies will provide "more details at that time."

According to Recode, the agreement is an "enormous step" between the companies that have shared harsh criticism and words among themselves.

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However, it seems the companies have made peace and realized they're better suited as collaborators instead of foes as Netflix's app will be present on the X1 platform, making it easy and convenient for Comcast's users to stream online content.

Netflix already has similar agreements with Apple Inc. AAPL as its app is an option for Apple TV users. The same can be said for Roku and Google Chromecast users, as well as smart televisions.