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Netflix reveals payment deal with Comcast and net neutrality position

After the deal between Netflix and Comcast in late February, Netflix CEO, Reed Hastings, has spoken up in a blog post to state that Netflix is paying Comcast, as its Internet Service Provider to improve the customer experience, reports Engadget late Thursday afternoon.

Special Screening of Netflix's 'House Of Cards' Screening 2- arrivals
Photo by Jason Merritt/Getty Images

Rumors buzzed after the deal was struck in late February about the payment issue for connection. Only general terms of the Netflix and Comcast deal was released. The confirmation that Netflix is paying Comcast to provide the service to its customers with streaming programs such as House of Cards was announced Thursday through a blog post by Reed Hastings.

Now, Hastings writes on his blog that the 'peering' agreement between Netflix and Comcast does not fall within net neutrality guidelines, but net neutrality rules should cover this type of arrangement.

He hopes that in the future those same companies will support ‘strong’ net neutrality which will allow Netflix to connect to their own networks without fees. Prior to the deal with Comcast, Netflix had used an ‘open connection’, Cogent Communications, over the year of negotiation consideration until the deal was finally struck at CES 2014 between Reed Hastings and Comcast CEO, Brian Roberts.

Comcast Executive Vice-President, EVP David Cohen, responded to the Hastings’ blog that Netflix has always paid a fair price for its Internet connection. His response to the blog added to the agreement terms was a fair deal as mutually beneficial by writing, ‘the Open Internet rules never were designed to deal with peering and Internet interconnection, which have been an essential part of the growth of the Internet for two decades. Providers like Netflix have always paid for their interconnection to the Internet and have always had ample options to ensure that their customers receive an optimal performance through all ISPs at a fair price.’

Cohen considers the deal as a market-based solution to our interconnection issues and demonstrates to the market’s ability to affect this benefit. Hastings has publicly stood by his blog content about the future without fees to connect.

In early March Variety broke the news that Sony Pictures Home Entertainment is giving Comcast the right to sell the first season of 'House of Cards' award winning show through its Xfinity Store service.

Sony has its piece of the pie to distribute ‘Houses of Cards’ Internationally and on DVD while it gives Netflix the streaming rights.

To find more about the Netflix, Comcast and other related deals of net neutrality view the list below in Author’s suggestions and the video atop this article with comments by Reed Hastings of Netflix on net neutrality.

Twitter: Victoria Wagner@victoriaross888

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