Netflix and Verizon Sign Interconnection Deal
Subscription video-on-demand giant Netflix has signed an interconnection deal with Verizon Communications similar to the one it signed with Comcast in February, with the purpose of improving streaming speeds to its subscribers. Neither party disclosed the terms of the agreement.
Rather than paying intermediary services to carry its significant traffic, Netflix is now paying for improved service directly with Comcast and Verizon. At the same time, Netflix is waging a public campaign arguing that it shouldn't be required to pay these fees, as consumers already pay their ISPs for internet service. Peering/interconnect agreements aren't uncommon. Comcast pointed out that Akamai, Limelight, and Yahoo all have similar arrangements in place.
“While in the short term Netflix will in cases reluctantly pay large ISPs to ensure a high-quality member experience, we will continue to fight for the internet the world needs and deserves,” Netflix CEO Reed Hastings wrote in a blog post.
Netflix performance on Comcast improved greatly after the first agreement. Verizon customers are no doubt hoping for similar results.
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