Netflix and Comcast confirm a paid direct interconnection deal
Netflix agreed to pay Comcast for a direct network interconnection designed to improve Netflix streaming performance for Comcast broadband customers.
Historical context
Netflix had become one of the largest sources of downstream internet traffic, while disputes between access ISPs, transit providers and content networks were producing congestion and degraded video quality. Netflix had promoted settlement-free peering and Open Connect caches, but the largest U.S. broadband providers had enough scale to demand different commercial arrangements.
What happened
The companies confirmed a multi-year arrangement under which Netflix traffic would reach Comcast more directly rather than relying entirely on congested intermediary routes. The financial terms were not disclosed, but reporting established that Netflix was paying Comcast.
Consequences
The deal became a central example in debates about internet interconnection and the distinction between paid peering and traditional net-neutrality rules. Netflix subsequently reached similar arrangements with other large U.S. ISPs while arguing publicly that broadband market power was forcing it to pay access tolls.