Sunday, Netflix and Comcast reached an agreement that will boost the online video service's speeds and ensure uninterrupted high-quality streaming. The deal did not come easy or free, however. Netflix agreed to pay Comcast to avoid lengthy loading and buffer times, but just how much has not been revealed by either party. In another deal, Comcast–who is already the largest Internet service provider (ISP) in the United States–recently struck another deal with Time Warner Cable that would merge the two, substantially increasing their customer base. That deal still needs to be reviewed and approved by the FCC, however, to ensure fair competition.
"It's not a surprise that Netflix's been talking with everyone [...] In order to keep the Internet vibrant, we have to make investments," says Verizon CEO.
There has not been any indication as of yet whether or not this will be pushed onto said subscribers via higher subscription fees. Currently, customers are paying $7.99 monthly for multi-device stream-only service. The Netflix-Comcast deal opens doors for other ISPs to come knocking for collection. Precedent is now set and the message is that Netflix is willing to pay a little extra to avoid angry subscribers. Verizon CEO Lowell McAdams went on record yesterday with a statement expecting Netflix to strike a similar deal with their company.
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