Netflix, Inc. (NFLX) calls out Verizon for slow data speeds

Posted Jun 4, 2014

Netflix, Inc. (NASDAQ:NFLX) is alerting viewers when its picture quality slows down. Last night, Vox Media designer Yuri Victor sent out a tweet with a photo of a Netflix screen with a message that blames Verizon for the slow speed. “The Verizon network is crowded right now,” says the message. Netflix said it was adjusting video for smoother playback. Netflix spokesman Jonathan Friedland posted a tweet that said the feature is being implemented to “keep members informed.”

Two months ago, Netflix signed an interconnect deal with Verizon. Netflix was hoping that this would improve video quality for Verizon customers that use Netflix. This deal is similar to an arrangement that Netflix made with Comcast. The deal gives Verizon direct access to Netflix’s content delivery network for delivering better video quality.

Netflix is not happy about signing these types of deals. Netflix believes that these telecommunication companies are unfairly scaling back Netflix’s traffic and should allow for full access without having to pay. Netflix publishes a transparency report that it updates regularly to show the speeds that its subscribers are getting on different networks. Verizon FiOS is ranked #8 with an average speed of 1.99Mbps. The top provider is Google Fiber, which delivers an average speed of 3.6Mbps.