Netflix Inc. has agreed to pay Comcast Corp. to ensure Netflix movies and television shows stream smoothly to Comcast customers, a landmark pact that could set a precedent for Netflix's dealings with other broadband providers, people familiar with the matter said.
In exchange for payment, Netflix will get direct access to Comcast's broadband network.
The deal comes just 10 days after Comcast agreed to buy Time Warner Cable...
An escalating battle between Netflix and the largest Internet service providers is degrading service for the streaming video company's customers, Time reports. With the explosion of high-bandwidth services like Netflix, which accounts for a massive amount of Internet traffic, the traditionally amicable peering relationship between bandwidth providers is starting to break down. This is a scenario that open Internet advocates have been warning about for years. It's no secret that the big telecom and cable companies resent the fact that they are obliged to deliver high bandwidth content like Netflix -- which competes against their own video offerings -- in addition to less bandwidth-intensive traffic like emails and chats.