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)

What's On 'KLH?

Hire Me MKE

HireMeMKE_620x400

Looking for a job around the Milwaukee area? Check out some openings>>

Wanna Play DJ?

HEYMOM

You can host your own show Sunday night at 6 on ‘KLH!

Recent Headlines

in Sports

This week’s top sports shots

AP491836413688

A look at some of the biggest hits and best scores this week in sports.

in National

Virgin Galactic spaceship crashes during test flight

virgin

A passenger spaceship being developed by Richard Branson’s Virgin Galactic has crashed.

in Entertainment

Coming soon: The Mustache Hall of Fame

burtreynolds

There are halls of fame for everything from baseball to rock 'n' roll, so why not those with a hairy upper lip?