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NETFLIX SAYS DEAL WITH COMCAST FOR FASTER SPEED PAID OFF

April 16, 2014 by · 1 Comment 

Netflix’s decision to pay Comcast to connect directly to its Open Connect delivery network has paid off with an average speed boost of 65 percent, Netflix said on its blog Tuesday. In February Wedbush Securities estimated that Netflix had agreed to pay Comcast between $25 million and $50 million for the direct connection, although each side declined to discuss details of the deal. Netflix is reportedly currently in discussions with AT&T and Verizon about a similar deal. Home Media magazine observed on Tuesday that the speeds of both companies’ ISP services declined last month, implying that the slowdown may have been a negotiating tactic. Higher speeds translate to higher resolution and fewer glitches. In the statement on its blog, Netflix said, “We are dedicated to delivering a great streaming experience and invest in continually improving that experience. Part of that investment is working with ISPs to make Netflix delivery easy and to avoid congestion.” It gave Cablevision highest marks with an average speed of 2.96 Mbps.