Netflix and its customers want the company’s streaming experience to be as smooth and speedy as possible, especially with the HD and now Ultra HD content Netflix is pushing through the pipes. The streamer and cable giant Comcast just announced an agreement in which Netflix will pay Comcast an undisclosed sum for Netflix to connect directly to Comcast’s broadband network.
Such a move would make for a faster, better streaming experience for Netflix-subscribing Comcast customers. In a joint statement, the two companies announced “A mutually beneficial interconnection agreement that will provide Comcast?s U.S. broadband customers with a high-quality Netflix video experience for years to come. Working collaboratively over many months, the companies have established a more direct connection between Netflix and Comcast, similar to other networks, that?s already delivering an even better user experience to consumers, while also allowing for future growth in Netflix traffic. Netflix receives no preferential network treatment under the multi-year agreement, terms of which are not being disclosed.”
As Verizon customers have complained that their Netflix experience has been slower lately, it stands to reason that a similar deal may be in the works between Netflix and Verizon, as well as AT&T and other broadband providers.
Tony Wible, an analyst with Janney Montgomery Scott, thinks that such deals may be inevitable in the near future:
“It sets a new business model in place . . . Anybody who is sending a lot of data through the internet will presumably have to pay more.”
We’ll see soon enough if Netflix has more direct access deals in the works. Is this simply great news for Netflix subs, or will they soon have to pay the piper for their faster streaming experience by paying increased subscription fees to Netflix to offset the streamer’s fees to service providers?
[via The Wrap]
It looks like Netflix caved in and paid the ransom. So much for “Internet neutrality”!
What about Amazon prime hulu or redbox instant or even youtube will they have to pay for a smoother internet experience too? Besides we pay internet companies for a faster more expensive internet speed for a smooth experience already but now Comcast is an internet giant and Netflix will have to suck up to them and probably trying to make the same deal with comcast that Netflix was doing with time warner to put an Netflix app in the cable box . I have twc what will happen when Comcast takes over? Will they increase prices cause in my region the other internet provider its at&t but the dsl and its slow for my usage needs plus the have a usage limit
Yea, as a customer paying my monthly fee to AT&T, I feel like I’m getting screwed. Amazon prime runs perfectly, but Netflix is unwatchable. I’ve set my Netflix settings to high, and still can’t stand watching it. I’m convinced this is an at&t problem, bit they won’t fess up. I didn’t see an asterisk by the 18Mbps when I signed up for my plan.