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Comcast and Netflix strike a deal for direct traffic access

Reports have been circling that Comcast and other cable companies have been throttling Netflix because of cost disagreements. Neither company could decide who would be fronting the bill for Netflix’s growing stream of data. Re/code reports that Netflix and Comcast have reached a deal that would allow for customers to get the best possible streams of their favorite shows.

The terms of the deal are not being disclosed at this time, but we all know that some money was exchanged in the process.  Experts in the field are calling this deal a transit agreement as opposed to a peering agreement where no money is exchanged. Netflix has had an influx of viewers because of House of Cards, and this is just the tip of the iceberg. If more people subscribe to Netflix and shows like House of Cards are released we could see millions more people binge watching shows and straining the service and the data connections that the data passses through.

“Netflix receives no preferential network treatment under the multi-year agreement,” the statement read. We hope that Netflix rates won’t increase as the company tries to make sure the customers receive the highest quality streams. This agreement also begs the questions if Comcast is acting trying to build a monopoly by purchasing Time Warner Cable.

Here’s a statement from both companies, with the very broad outlines:

“Comcast and Netflix today announced a mutually beneficial interconnection agreement that will provide Comcast’s U.S. broadband customers with a high-quality Netflix video experience for years to come. Working collaboratively over many months, the companies have established a more direct connection between Netflix and Comcast, similar to other networks, that’s already delivering an even better user experience to consumers, while also allowing for future growth in Netflix traffic. Netflix receives no preferential network treatment under the multi-year agreement, terms of which are not being disclosed.”

 

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