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It now has speeds of 2.5Mbps

Netflix isn't too keen on paying internet tolls to internet service providers (ISPs), but at least the agreement with Comcast made a clear difference for users. 
 
According to Netflix, its streaming speeds on Comcast increased 65 percent after the deal between the two was made. In fact, Comcast made its way to fifth place in Netflix's ranking of ISP performance for the month of March 2014, which is five spots better than its previous ranking.
 
Comcast is now delivering Netflix content at an average streaming speed of 2.5Mbps, up from the 1.15Mbps average Comcast delivered in January.


Netflix agreed to pay Comcast in February 2014 to ensure that its movies and TV shows stream easily without traffic jams on Comcast's broadband network. It's not clear how much Netflix is paying Comcast, the new deal will span several years and Comcast said it would connect to Netflix's servers at data centers operated by other companies.  

This is a big step between big cable and Internet streaming companies, as it means Netflix is more likely to offer similar deals with other major cable companies. But Netflix wanted this to be a one-time deal until it managed to push laws in place that eliminated these tolls.  

Earlier this month, the Federal Communications Commission (FCC) denied Netflix's call to expand net neutrality so that it covered companies and their methods of connecting to the internet.  More specifically, Netflix CEO Reed Hastings wanted the FCC to regulate the way companies like Netflix connect to the Internet so that they wouldn't have to pay tolls to other companies (like Comcast, for example) to make sure its video gets to customers quickly and without any issues.  

Source: Netflix



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Misinformation
By thesavvymage on 4/14/2014 9:51:58 PM , Rating: -1
So much misinformation in this article. Netflix did not pay Comcast to keep them from slowing down traffic, they cut out Cogent, who peered them together, and are paying Comcast to connecting to them directly without needing a third party peering agreement. I almost never comment but this "news" site sucks a big one at actual reporting




RE: Misinformation
By Morawka on 4/15/2014 2:26:12 AM , Rating: 5
nah your wrong. Many CDN's are involved, not just cogent. Comcast was throttling, they even admitted to it. Proof is everywhere. Apple TV users that used comcast could get netflix at full speed because they run their own CDN and bypass Comcast's filters.

Also several investigators setup a VPN to prove netflix traffic was being throttled. When the data was encrypted (comcast cant read the bits), netflix went full speed, however as soon as they logged off the VPN, throttling continued.


RE: Misinformation
By BRB29 on 4/15/2014 8:21:52 AM , Rating: 3
Comcast is the worst scoundrel in the ISP business but they are the largest. This is why Netflix is forced into doing this or they can watch their growth slow down and stocks tank.

I pay for the higher tier internet speed to view HD videos and gaming. Now I have to pay extra to view HD videos? This is as retarded as it gets. I'm sure netflix will just bump their price to cover this as they are barely profitable as it is.


RE: Misinformation
By Mitch101 on 4/15/2014 8:55:07 AM , Rating: 2
A cable company wanting more money otherwise they will bandwidth limit their competition? This seems like extortion to me.

Paying customers are the ones paying for higher speed internet. High speed internet is advertised as paying more will get you faster download speeds. Apparently that's false advertising if they are limiting competitors like Netflix on the other end.


RE: Misinformation
By Solandri on 4/15/2014 2:27:50 AM , Rating: 3
While I agree that's correct, characterizing it that way ignores that had this been a free market, it would be Comcast who'd be paying Netflix for the peering agreement. Comcast's customers are the ones who suffered poor Netflix performance. Comcast would've then had to figure out some way to make those customers happy, or risk losing them to a competing ISP. So they would've paid Netflix for the privilege of a direct peering agreement or hosting the content locally.

The only reason it's the other way around - Netflix is paying Comcast - is because Comcast has a monopoly on cable Internet service in the areas it covers. What they're doing should be illegal.


RE: Misinformation
By Dr of crap on 4/15/2014 9:33:40 AM , Rating: 2
While I agree with you, Comcast doesn't have a monopoly in all areas.
I have the choice to have Comcast, CenturyLink, and I'm sure there are at least one or two other ISPs I could go with. I choose to NOT use Comcast because of them being a cable TV provider and their crappy record of customer service.

AND of course the cost. Centurylink, 20 mbps for $30.


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