Andre Yoskowitz
23 Feb 2014 21:28
Netflix has announced some truly breaking news this weekend, signing a long-term deal with Comcast that will ensure full access to the service provider's unthrottled broadband network, and provide a smooth experience for its streaming customers due to guaranteed throughput.
The news comes just months after Internet providers fought successfully to end net neutrality, and just days after Comcast agreed to purchase Time Warner Cable for $45 billion, essentially creating a monopoly for Internet and cable in the U.S.
Comcast is just one of a number of ISPs that have been seeing clogged networks and slower speeds for bandwidth hogs like Netflix, causing interruptions for customers, especially those trying to stream in HD or 4K. Additionally, Netflix connected to Comcast through a third-party, Cogent Communications, which led to added "traffic jams," especially during key times like the release of House of Cards season 2. Rather than pay a third-party to connect, Netflix will now deliver their content directly to Comcast, most likely at a higher base quality than they were getting previously. This is great for consumers.
CEO Reed Hastings allegedly did not want performance to drop even further, which could lead to questioning of the Netflix brand rather than the ISPs. By some reports, Netflix accounts for 30 percent of all U.S. Internet peak traffic, by far the most of any service.
Netflix has been trying to have its servers connected to ISP networks, for free, and has been successful with some smaller providers in the U.S. and overseas. The majors, however, like Comcast, TWC, AT&T and Verizon all wanted a fee due to the heavy load of traffic. Following the Comcast deal, Netflix will likely sign similar agreements with the rest of the providers.