The online video streaming service has confirmed that it has also signed a similar deal with Verizon Communications. Back in February Netflix agreed to a “paid peering” deal with Comcast, allowing the latter’s subscribers to get better quality video. Prior to the agreement it was rumored that Comcast had actually started throttling Netflix traffic on its network thus compelling the video streaming service to pay for a direct connection.
Soon after the Netflix-Comcast deal was announced Verizon CEO said in a statement that he expected Netflix to do the same with his company as well. Both companies were having talks back then and they have finally reached an agreement. Netflix says in a statement that it hopes this interconnect agreement “will improve performance for our joint customers over the coming months.”
Financial terms of the deal were not disclosed. It is also not know just how much Netflix decided to pay Comcast for the privilege. Some might say that this is downright extortion by these companies, then again, there’s already a heated debate going on about net neutrality.
AT&T has acknowledge as well that it too is in talks with Netflix for a similar deal. While it hasn’t confirmed the talks, Netflix has said in the past that it is in talks with all major service providers. The online video streaming service is soon expected to raise its subscription fees as well.