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 Entertainment

Chris Pratt the favorite to take on ‘Indiana Jones’ remake

Fresh
chrispratt

The "Guardians of the Galaxy" star is the latest frontrunner to lead a planned Disney remake.

in Entertainment

Liam Hemsworth might take over for Will Smith in ‘Independence Day’ sequel

Fresh
liamhemsworth

Jeff Goldblum and Bill Pullman are expected to return in "ID Forever," which is slated for a 2016 release.

in Entertainment

Emma Roberts, Dave Franco to star in film adaptation of ‘Nerve’

Fresh
emmaroberts

The thriller is based on the popular book by Jeanne Ryan.

in Music, Entertainment

Elton John’s musical drama picked up by HBO

Fresh
elton

The music icon has teamed up with "True Blood" creator Alan Ball, to produce a new show called "Virtuoso."

in Entertainment, Sports, Viral Videos

WATCH: History’s most talked about Super Bowl commercials

Updated
This image provided by Snickers actress Betty White in an advertisement for Snickers to air during the 2010 Super Bowl. White has been voted the Entertainer of the Year by members of The Associated Press.

We've rounded up the thirteen most memorable Super Bowl commercials. Which one is your favorite?