Netflix Agrees to Pay Verizon for Direct Connections
Originally posted on Variety:
Netflix has — reluctantly — inked a deal with Verizon Communications, under which the streaming-video service will pay the telco for high-speed interconnections.
Deal comes after Netflix reached a similar agreement with Comcast in February. They’re the only two Internet service providers Netflix is paying for direct access to consumer broadband subscribers.
“We have reached an interconnect arrangement with Verizon that we hope will improve performance for our joint customers over the coming months,” Netflix said in a statement.
Netflix is paying for guaranteed access to bandwidth to Comcast and Verizon, but the company doesn’t believe it should have to. CEO and founder Reed Hastings has complained that big ISPs are simply extracting a “toll” from Netflix because they have leverage in the market.
Verizon confirmed the deal. “We have reached a deal with Netflix, but we are not providing details of the agreement,” Verizon spokesman Alberto Canal said. “I…
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