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Netflix Pays Verizon to Improve Streaming Video Quality

April 29, 2014

Netflix will pay Verizon to help clear up some of the congestion that has been bogging down its Internet video service.

The deal marks the second time in less than three months that Netflix has anted up for a more direct connection to a major Internet service, even though CEO Reed Hastings objects to having to pay for better access.

Netflix negotiated a similar arrangement with Comcast in February.

The financial details of Netflix’s partnerships with Comcast and Verizon Communications haven’t been disclosed.

Netflix is reducing its reliance on third-party vendors to deliver video to Internet service providers because the streaming speeds of its movies and TV shows have been slowing in recent months.

Verizon ended March with about 9 million subscribers to its high-speed Internet service.

Why does this matter? Rob Pegoraro explains in his most recent Yahoo Tech column.