Netflix to Pay Comcast for Faster Streaming of Subscribers

Comcast and Netflix come to an agreement where Netflix pays Comcast to gain faster and more reliable access to Comcast subscribers.

This agreement is set to be put in full effect in the coming weeks and is said to give the consumers better experience while also enabling Netflix to deliver content faster. It also marks a highlight in the history of the internet wherein content providers such as Netflix usually didn't have to pay to access the customers of broadband provider.

The increasing power of broadband companies like Comcast, Verizon, and AT&T, has given companies more leverage over sites with traffic that takes up a huge portion of the network's capacity. One of those sites is Netflix, which takes up to 30 percent of all Internet traffic during peak hours.

This deal was made just after 10 days Comcast bought Time Warner Cable for $45 billion which makes Comcast the cable provider for about one-third of American homes, as well as high-speed Internet provider for up to 40 percent. It is expected that federal regulators would question whether the deal would hinder competition among cable and Internet providers. It is also questionable whether the deal between Comcast and Netflix has violated the principles of net neutrality.

The New York Times quoted the press release for the deal, saying that "Netflix receives no preferential network treatment under the multiyear agreement." While no other details were disclosed, it includes annual payments of several million dollars according to a person close to the companies.

Reports have shown that subscribers of Comcast and other providers like Verizon have been experiencing delays with the content delivery of Netflix.

Comcast, Verizon, and other Internet providers denied that they have a role in slowing down traffic and instead pointed to mediators that Netflix used to deliver content.

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