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Netflix signs paid streaming deal with Time Warner

2014-08-20 09:16 by
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Time Warner Cable signed a direct interconnection deal with Netflix, making it the fourth of the big four U.S. ISPs to sign paid peering agreements with the streaming video provider. Presumably, this agreement should improve the Netflix viewing experience of Time Warner Cable's broadband subscribers who also like to tune into Netflix fare.

"Time Warner Cable reached an agreement with Netflix in June, and we began the interconnection between our networks this month," a rep for the cable company said. Netflix confirmed that it has a deal in place with TW Cable.

Netflix execs have said they will "reluctantly" pay ISPs interconnection fees, with the goal of delivering better-quality video to their mutual customers. But CEO Reed Hastings has said such payments an arbitrary "toll" for gaining access to a provider's customers and the company has lobbied the Federal Communications Commission to reclassify broadband as a telecommunications service, which would give the agency authority to impose new price controls and enact other regulations.

Netflix is responsible for the largest chunk of downstream Internet data in the U.S. Until mid-2013, most of that data was carried by bandwidth providers who would hand off Netflix content to Internet Service Providers to carry the "last mile" to customers' homes. When peering points - the connections between ISPs and bandwidth providers - would become congested during times of heavy use, it was customary for ISPs to open up more connections to alleviate the congestion.

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