Tags: netflix | twc | deal | increase | streaming | speed

Netflix, TWC Deal to Increase Movie, TV Streaming Speed

Image: Netflix, TWC Deal to Increase Movie, TV Streaming Speed
(Ryan Anson/AFP/Getty Images; Mike Blake/Reuters/Landov)

By    |   Thursday, 21 Aug 2014 08:33 AM

Netflix signed off on a new deal with Time Warner Cable that could lead to Internet movie and television subscribers receiving faster streaming from TWC.

Both companies released one-line statements saying that the agreement was reached in June and interconnection between Netflix and Time Warner began this month. The Los Angeles Times reported that Netflix had complained that its past agreements with Comcast, Verizon and AT&T amounted to an "arbitrary tax" on major websites.

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"It's worth noting that Netflix connects directly with hundreds of ISPs globally, and 99 percent of those agreements don't involve access fees," wrote Rex Hastings, chief executive officer of Netflix in Wired magazine.

"It is only a handful of the largest U.S. ISPs, which control the majority of consumer connections, demanding this toll. Why would more profitable, larger companies charge for connections and capacity that smaller companies provide for free? Because they can."

Experts told the Los Angeles Times that even though the FCC is investigating the deals, they believed the agreements do not infringe on net neutrality principles, which believes there should not be different fast or slow lanes for Internet service providers.

The Wall Street Journal reported that the agreement was another effort by Netflix to also shore up its streaming content in the face of rising video streaming rival Amazon, which signed a deal with A&E Networks Aug. 15 to stream "Pawn Stars" and "Storage Wars." Amazon said then, noted the Journal, that it had double its streaming selection for its new Prime service.

"The deal is expected to be worth hundreds of millions of dollars, depending on how long each of the included shows stays on the air, a person familiar with the matter said," reported the Wall Street Journal. "Netflix will pay more per episode for shows that stay on the air longer. It is the biggest deal struck by Time Warner with Netflix other than a 2011 agreement with the CW network, which is jointly owned by Time Warner and CBS Corp."

The Wall Street Journal said the online streaming competition is just heating up with AT&T announcing this week it will provide its own U-Verse television service for customers, joining other efforts by Comcast, Verizon and the Dish Network.

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Netflix signed off on a new deal with Time Warner Cable that could lead to Internet movie and television subscribers receiving faster streaming from TWC.
netflix, twc, deal, increase, streaming, speed
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2014-33-21
Thursday, 21 Aug 2014 08:33 AM
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