Deutsche Telekom and Netflix are considering forming a marketing alliance

Netflix might have finally found an ally in a very contentious market. Reuters reportsthat German telecommunications company Deutsche Telekom is in talks with Netflix regarding a potential marketing alliance once the U.S.-based video service begin its international expansion. The news comes via Manager Magazine, a German publication in which it is noted that the two companies are rather far along in negotiations, but they have not reached a deal. In fact, Netflix was still weighing its options with other German telecom companies at the time of publication. Although Netflix is currently available in over 40 countries, the company has plenty of growing left to do. The global expansion into Europe would include both Germany and France, making this the biggest move yet for the company. According to the most recent estimates from financial firm SNL Kagan, Germany contains the most broadband households in all of Europe, with 29.1 million in 2013.

Deutsche Telekom is in talks with U.S. video streaming company Netflix about a possible marketing alliance, a German magazine reported on Friday. German monthly Magazine Manager cited people familiar with the matter as saying the talks were far advanced but no deal had been clinched and that Netflix was also in touch with other German telecoms groups. Netflix in May unveiled plans to launch in both Germany and France this year, in the biggest test so far of its global expansion strategy. Manager Magazine said Deutsche Telekom was open to accommodate Netflix’s expansion even though the service would compete with the German company’s own web-based TV offering called “Entertain”. Deutsche Telekom declined to comment. Netflix, whose internet-based delivery of movies and TV series such as “House of Cards” has disrupted pay-TV markets in the United States and elsewhere, wants to grow its international business to reach new customers and increase its buying clout with content providers. It is already in more than 40 countries, mostly in Latin America, and has entered Britain, Ireland, the Nordics and the Netherlands in the past two years. In Germany, it would compete with Amazon’s Prime Instant Video, ProSiebenSat.1’s Maxdome, Sky Deutschland’s Snap and Vivendi’s Watchever. Germany has the highest number of broadband households in Europe, with 29.1 million in 2013, according to estimates from SNL Kagan.

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