Netflix seals Verizon network peering deal
Editor | 29-04-2014
Reports are suggesting that over-the-top (OTT) leader Netflix has signed its second deal with a US ISP to guarantee quality of its service.
According to USA Today, Netflix has struck a deal to gain a more direct connection between its servers and Verizon's network for improved delivery of content. The American news outlet quoted Netflix as saying that it had made the deal reluctantly but felt it was needed to keep subscribers satisfied. It quoted spokesman Joris Evers as saying: "We have reached an interconnect arrangement with Verizon that we hope will improve performance for our joint customers over the coming months."
The deal has been seen as just a matter of time in the making after Netflix agreed in February 2014 to pay Comcast for direct access to its No 1 cable MSO's network in an interconnection agreement designed to help ensure that its movies and television shows stream without interruption to Comcast customers.
In March 2014, Verizon CEO Lowell McAdam confirmed that the two companies were in talks to ink a paid interconnect agreement for direct peering between the two. "It shows you don't necessarily need a lot of regulation in a dynamic market here. Doing these commercial deals will get good investment and good returns for both parties," the executive revealed.