After last week’s trials and tribulations, Netflix opened the week with an announcement that it has also signed with Verizon, reported Engadget late Monday. The deal was confirmed by Netflix's Vice-President, Joris Evers.
This deal follows in similar pattern to the Netflix deal with Comcast last February. Netflix signed after a year of anguish by CEO, Reed Hastings, who was opposed to paying for the ISP, Comcast, for streaming content through Netflix.
It has been a persistent complaint by Hastings and continued through his criticism of the Comcast. Netflix informed its shareholders that Comcast-Time Warner merger would allow a monopolistic giant service provider to control streaming and raise fees on the consumer.
The stream speed did pick up after the signing with Comcast, but the haggling continued from Netflix that it was using all pipelines available to stream content to customers. Comcast blamed Netflix for not using all pipelines available to them. It was a classic he said and she said situation.
“We have reached an interconnect arrangement with VZ that we hope will improve performance for customers over the coming months,” was the official statement from Netflix’s Evers posted online Monday. Analyst Walter Piecyk released the news earlier based on a meeting with Verizon's CEO Lowell C McAdam.
Everyone is caught up on the confirmations at this point. Netflix’s CEO Reed, however, is also unhappy with the F.C.C. proposal of new rules that will allow an ISP to make agreements for a charge of higher fees for a higher rate for faster speed in the pipeline to the consumers’ device.
The basis of the F.C.C. thinking on the new rule is that once a provider like a Comcast or Verizon makes an agreement with fee price to provide streaming content to a Netflix, the F.C.C. will review the agreement to determine if it is reasonable.
In between the F.C.C. announcement last Thursday and the Verizon agreement, Netflix also signed on with three main cable companies to stream its video service as its own cable channel. Beginning yesterday if you had access to one of three cable companies, CN Communications, Atlantic Broadband and Grande Communications, customers could view Netflix content programs on its own designated channel.
It has been a saga with Netflix as the star of its own drama over the past weeks, so the next episode may appear on Reed’s blog. At this point the consumer is gaining viewing but the cost increases remain to be seen.
The debate and lobbying will lead in Washington D.C. already has warning comments. Free Press President and CEO Craig Aaron stated in response to the F.C.C. announcement that, “with this proposal, the FCC is aiding and abetting the largest ISPs in their efforts to destroy the open Internet. Giving ISPs the green light to implement pay-for-priority schemes will be a disaster for startups, nonprofits and everyday Internet users who cannot afford these unnecessary tolls."