News

Netflix agrees to pay AT&T for smooth streaming

Netflix agrees to pay AT&T for smooth streaming

SMOOTH STREAMING:This marks the third such agreement Netflix struck with major U.S. Internet service providers in recent months after it revealed similar traffic exchange agreements with Verizon Communications Inc in April and Comcast Corp in February. Photo: Associated Press

WASHINGTON (Reuters) – Video streaming service Netflix has agreed to pay U.S. broadband provider AT&T Inc to ensure smooth delivery of Netflix content to Internet users, the companies said on Tuesday.

The announcement of the deal, struck in May, comes as Netflix has been waging a public campaign against such fees, which they present as tolls, and calling on the Federal Communications Commission to review the market.

Having brokered this so-called interconnection agreement, AT&T and Netflix are now working to build out new network connections for Netflix content to be delivered directly to AT&T’s servers “to improve the viewing experience for our mutual subscribers,” the companies’ representatives said.

“We’re now beginning to turn up the connections, a process that should be complete in the coming days,” AT&T spokesman Michael Balmoris said.

This marks the third such agreement Netflix struck with major U.S. Internet service providers in recent months after it revealed similar traffic exchange agreements with Verizon Communications Inc in April and Comcast Corp in February.

Consumers have also complained to the FCC about an ongoing spat between Netflix and major Internet providers, saying they are experiencing slow download speeds for Netflix video.

Both sides accuse each other of causing a slowdown in Internet speeds by the way they route traffic.

Financial terms of such interconnection agreements are secret. The FCC last month moved to privately review the current deals, though did not indicate specific plans to regulate that part of the market.

(Reporting by Alina Selyukh; Editing by David Gregorio and Cynthia Osterman)

Recent Headlines

in National

TSA vows to close security gaps at U.S. airports

tsa

The new leader of the Transportation Security Administration said his top priority would be to close security gaps after an internal report showed 96 percent of undercover tests failed.

in National

Americans report improved health, better healthcare

healthcare

The study of more than 500,000 Americans found improvements in insurance coverage, access to primary care and prescriptions, and overall health since late 2013.

in National, Sports

Boston to blame for Olympic bid flop, says IOC’s Bach

boston

Boston was picked by the U.S. Olympic Committee to be the country's candidate for the 2024 Games but rescinded its bid in a spectacular U-turn on Monday after the city's mayor said taxpayers could not afford to host the event.

in Sports

Platini to run for FIFA presidency

platini

UEFA head Michel Platini announced on Wednesday his intention to stand for presidency of FIFA in place of Sepp Blatter.

in National

U.S. homeownership hits 35 year-low, renting in vogue

housingmarket

The drop in ownership underscores the damage inflicted on housing by the recession and the economy's subsequent slow recovery from the downturn.