Earlier this year we saw Netflix ink its first agreement after reports emerged that its users were being throttled by ISPs. Under the agreement Netflix pays an undisclosed amount directly to the ISP so that its users are not throttled and they get the streaming experience that they expect from it. The online streaming giant has now signed a similar agreement with Time Warner Cable hoping to bring its subscribers on that particular ISP on faster lanes that offer significantly better connection speed to its servers.
I should point out at this stage that Netflix now has these agreements with the top four broadband providers in the U.S., which include Comcast, AT&T, Verizon and Time Warner Cable.
Gigaom reports that this new interconnection deal between Netflix and TWC was actually signed back in June, however the provider has started putting it in place this month. Time Warner Cable seeks a merger with Comcast though it seeks regulatory approval for that.
History shows that subscribers don’t necessarily see an improvement in their Netflix experience immediately after such deals are signed. ISPs need time to provide Netflix subscribers with those fast lanes that ensure streaming doesn’t encounter congested networks or reduced quality.
However even though Netflix has agreed to pay for the privilege, in the never ending net neutrality debate it is of the view that such deals go against the very principle of net neutrality.