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

Ex-officer not charged in fatal Milwaukee shooting

milwaukee

A prosecutor says he won't file charges against a white former police officer in the fatal shooting of a black man.

in Sports

Monday’s Sports Minute

lebron

Here is a look at some of today's big sports stories, on Monday, Dec. 22.

in National

Cuba’s famed cigars get a foot in door of U.S. market

cigars

Cuban cigars are considered by many as the best in the world.

in Entertainment, National

Obama: Sony hack not an act of war

interview

President Barack Obama says the massive hacking was not an act of war but instead was cyber-vandalism.

in Trending, Viral Videos

TODAY’S MUST SEE: ‘Dr. Evil’ on the Sony hack

20-overlay2

Mike Myers interrupts "Saturday Night Live" to address North Korea and Sony Pictures directly about the hack.