This past weekend, Comcast and Netflix signed a deal. Netflix paid Comcast to ensure that huge volumes of data would arrive seamlessly in customer homes. This follows news that Netflix’s traffic was performing poorly on the Comcast network. Netflix consumers around one-third of Internet data across the U.S. Verizon’s CEO said that Netflix is expected to make a deal similar to this one.
Verizon CEO Lowell McAdams revealed that they have been in talks with Netflix for around a year now.
“If you see someone come in with a lot of load on the internet, [with] video, you’ve got to get that in an efficient place. So making the connection far out on the network is a good thing, and frankly, paying for it,” said McAdams. “To me this shows you don’t necessarily need a lot of regulation in a dynamic market here. By doing these commercial deals we’ll get good investments and good returns for both parties.”
These deals seem to be in direct opposition from Netflix’s stance last month. Netflix threatened to provoke customer outrage if they had to pay to stop degradation of its traffic. When Comcast announced the acquisition of Time Warner Cable, Netflix may have had to concede.