Netflix has addressed any potential concerns about the streaming speed and quality that customers may have when using the service. The video streaming service has made an agreement with Verizon to improve the user experience by leveraging Verizon’s fiber to the home (FTTH) network.
The terms of the deal will have Netflix pay Verizon to ensure it has faster network access. The deal is not meant to provide Netflix with any preferential treatment but rather to let Netflix bypass overcrowding at the interconnection points between ISPs and transit providers.
Despite its hesitance, Netflix has made this agreement with both Verizon and Comcast. Netflix initially disputed that the Federal Communications Commission should prohibit these types of payments. However, the continued low streaming performance and lack of backing left them with no choice. The result of reaching an agreement like this already paid off since Netflix performance on Comcast improved 65 percent after the companies made their agreement. Similar results should be expected in the wake of the Verizon deal.
Concern over poor performance has become more significant for Netflix as disputes over money rage on with other providers. Negotiations with AT&T continue as they maintain a demand for higher payment. Nonetheless, Netflix has not made any progress with AT&T at this time. Netflix has also been pushing to develop the streaming experience for its subscribers with the Open Connect program. This program allows ISPs to connect to them at Internet exchanges or install its own servers within the network.
As money has become an issue, users will also see the results of this. By gaining better quality streaming, new subscribers will now pay $10 per month compared to the prior price of $8 a month. However, current subscribers will have their monthly rate frozen at $8.
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