DT, by far Germany's biggest carrier, is said to be comfortable with a tie-up even though it indirectly competes with Netflix through its Entertain IPTV service. Netflix is also reportedly talking with other local carriers.
Netflix, already operating in several European countries, is also looking to enter France and 4 other continental markets this year. The company was reported in April to be talking with Vodafone (operates in many European markets) about a free streaming promotion.
Netflix's relationships with U.S. service providers have often been thornier.