The deal is similar to the one that Netflix has with Comcast
Netflix has just signed a deal with Verizon in order to keep its streaming video content steady and delivered in a smooth manner. This is the second similar contract signed by Netflix after Comcast.“We have reached an interconnect arrangement with Verizon that we hope will improve performance for our joint customers over the coming months,” said Joris Evers, Netflix spokesperson.
The video streaming service has been complaining about the poor quality of its service due to Verizon’s networks, hinting that most likely the ISP was tinkering with speeds, something that Verizon has denied.
The same thing happened with Comcast prior to signing the deal, as Netflix noticed a constant drop in speeds. Following the agreement, Reed Hastings even said that the company had been bullied into the deal since it could just sit by and let subscribers suffer.
“Comcast is not charging Netflix for transit service. It is charging Netflix for access to its subscribers. Comcast also charges its subscribers for access to Internet content providers like Netflix. In this way, Comcast is double dipping by getting both its subscribers and Internet content providers to pay for access to each other,” added Ken Florance, Netflix vice president of content delivery.
No details about the deal have been revealed thus far, neither in the case of Verizon, nor of Comcast. Either way, this can’t have been an easy decision for Netflix considering how many times it has slammed Comcast after it agreed to pay for the Internet fast lane.
In fact, the company has taken additional steps to make sure that everyone knows how displeased it is to have to pay to make sure that its customers are receiving proper-quality content. For instance, Netflix has urged the FCC to reinstate net neutrality, which would kill the deals it signed with Comcast, and now Verizon, since ISPs would not be allowed to create Internet “fast lanes.”
The company has also expressed its opposition to the merger deal between Comcast and Time Warner Cable, saying that it would kill competition and allow the new company to dominate the market.
With Comcast and Verizon down, Netflix may just sign a similar deal with AT&T next, especially after it slammed the poor quality speeds it gets on this network in the latest letter to shareholders.
If the FCC decides to protect and reinstate net neutrality rules, the deals will most likely be canceled.