Netflix Makes Deal with Verizon…Reluctantly
Netflix arrived at a deal with Verizon that will grant the streaming video platform high-speed internet in exchange for pay. Similar to the deal Netflix reached with Comcast this past February, it should provide Netflix users with faster access to the movies, television series, and original programming that they’ve come to love and expect to stream at a fast pace.
On the one hand, this will benefit the two company’s “combined customers,” said Verizon spokesman Alberto Canal, according to Variety. On the other hand, you can see the deal as not making much logical sense. If customers are paying for high-speed internet at home and subscribing to Netflix, why should Netflix have to pay again for that fast internet?
The online streaming video service does result in some concentrated internet traffic, so the deal should work towards clearing that up for users. Netflix also works through the Open Connect program for this purpose, allowing ISPs to connect their networks directly to Open Connect for free to ensure speedier streaming. Among the major ISPs that connect through the program are Google Fiber, Cablevision, and Virgin. Verizon and Comcast, however, do not participate, and they are the only two ISPs that Netflix pays for access to bandwidth.
Netflix supports the notion of “net neutrality,” so that it won’t have to make deals like this one with Verizon, details of which remain undisclosed.Tags: Comcast, ISPs, Netflix, streaming video, verizon