Netflix, Verizon Deal Ensures Faster Delivery of Content to Customers

Tuesday, 29 Apr 2014 06:41 PM

By Jonna Lorenz

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Netflix has agreed to a deal with Verizon Communications for faster delivery of its content to customers while continuing to publicly protest such deals, known as interconnect agreements.

Last month, Netflix CEO Reed Hastings called interconnection arrangements an “arbitrary tax” and said Internet service providers should “provide sufficient access to their network without charge,” according to a Netflix blog.

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Netflix spokesman Joris Evers linked to the blog on Tuesday in a Tweet about the deal.



Terms of the deal weren’t disclosed. Netflix reached a similar agreement with Comcast in February. Since then, it has seen the fastest speeds in 17 months for videos streaming through Comcast’s service, according to The Daily Mail.

Broadband providers say that interconnection agreements are fair because companies such as Netflix should have to carry some of the financial burden of delivering their content.

The deal gives Netflix a more direct connection between its servers and Verizon's network, which speeds up streaming.

Netflix is responsible for as much as a third of North America’s peak Internet traffic, The Wall Street Journal reported.

Netflix has offered to pay for deploying equipment to deliver its content efficiently, but broadband companies say that doesn’t address the heavy load on network infrastructure.

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