Netflix agrees to pay Comcast to assure streaming2014-02-24 09:41 by Daniela
Tags: Netflix, Comcast, Net Neutrality
Netflix and Comcast on Sunday confirmed a deal that will provide Comcast's U.S. customers with access to Netflix's high-quality video streams. The video-rental company has agreed to pay Comcast to be allowed to connect directly to its network instead of going through intermediaries, as it formerly did.
The deal comes just 10 days after Comcast agreed to buy Time Warner Cable.The acquisition, if approved, would establish Comcast as by far the dominant provider of broadband in the U.S., serving 32 million households before any divestitures it might make. It also comes amid growing signs that congestion deep in the Internet is causing interruptions for customers trying to stream Netflix movies and TV shows.
Netflix had 33 million U.S. streaming subscribers at the start of the year and accounts for about one third of all traffic on the Internet, according to research firm Sandvine. As the video steaming company has grown, Internet service providers like Comcast have pushed the company for more structured deals to enable its content to be transmitted smoothly and reduce the strain on their networks.
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