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 News

11 hours ago in Entertainment

Jim Beam fills 14 millionth bottle of bourbon

jimbeam807686855761

Jim Beam has filled and sealed its 14 millionth barrel of bourbon since the 1933 repeal of Prohibition, achieving a first in the bourbon industry.

11 hours ago in Music

Stone Temple Pilots shoot down Scott Stapp rumors

scottstapp

Stone Temple Pilots have denied reports suggesting the former Creed rocker is set to become their new lead vocalist.

11 hours ago in Entertainment, Viral Videos

‘Star Wars: The Force Awakens’ as told by emojis

11-overlay-2

If the blockbuster movie was told entirely by characters on your cell phone.

11 hours ago in Entertainment, Weird

‘Rock’ your clock

dwaynetherockjohnson690454149554

Dwayne "The Rock" Johnson has an app to help you organize their day.

11 hours ago in Entertainment, Sports

Hulk Hogan seeks second slam of Gawker over racist comments leak

Terry Bollea, known as professional wrestler Hulk Hogan, listens while testifying in his case against the news website Gawker at the Pinellas County Courthouse, in St. Petersburg, Fla., Monday, March 7, 2016. Hogan is suing Gawker for $100 million for publishing a video of him having sex with his best friend's wife. (Boyzell Hosey/Tampa Bay Times via AP, Pool)

Hulk Hogan accused Gawker of leaking his racist remarks in a lawsuit filed in Florida on Monday involving a secretly-recorded sex tape of the wrestling celebrity, who recently won $140 million in damages against the media website in a related case.