Netflix in deal to pay Verizon for faster access
Andrew Harrer/Bloomberg via Getty Images
By Lisa Richwine

LOS ANGELES -- Netflix (NFLX) has reached a deal to pay Verizon Communications (VZ) for faster delivery of its TV shows and movies, the second arrangement to pay fees for quicker access that the company argues should be free.

Financial terms weren't disclosed.

In February, Netflix struck a deal with Comcast (CMCSA) to pay for faster delivery over the Internet through a practice known as interconnection. Weeks later, Netflix Chief Executive Officer Reed Hastings said he had reluctantly agreed to pay the fees so his customers would get better service.

Hastings, in a blog post in March, called on broadband providers to make adequate connections available to Netflix for free, but said Netflix might reach deals to pay other providers in the short term.

On Monday, Netflix spokesman Joris Evers said "we have reached an interconnect arrangement with Verizon that we hope will improve performance for our joint customers over the coming months."

Verizon spokesman Bob Varettoni confirmed the deal.

"We reached this agreement to deliver improved service for our combined customers," he said.


Increase your money and finance knowledge from home

Reading a Stock Quote

Learn to read the ingredients of a stock.

View Course »

Small Cap Investing

Learn now to invest in small companies the right way.

View Course »

Add a Comment

*0 / 3000 Character Maximum