Netflix and AT&T Strike Peering Agreement to Enhance Streaming Quality
Netflix has finalized a peering agreement with AT&T, marking another strategic move to ensure seamless video delivery for its subscribers. Under this deal, Netflix will pay AT&T for direct network access, optimizing data flow and reducing buffering for users.
The Growing Trend of Paid Interconnection Deals
This agreement follows similar partnerships with major ISPs like Comcast and Verizon, reflecting a broader shift in how streaming services manage bandwidth demands. Key details:
- Purpose: Establishes dedicated connections between Netflix and ISP networks
- Benefit: Prevents congestion at interconnection points
- Outcome: Improved streaming speeds and reliability for end users
How Peering Agreements Work
Unlike traditional net neutrality debates about traffic prioritization, these deals focus on network entry points:
- Netflix subscribers (who are also ISP customers) request massive data volumes
- Without paid agreements, traffic exchanges occur through congested public links
- Direct connections create optimized pathways for Netflix content
Netflix’s Stance on Network Neutrality
While entering these agreements, Netflix maintains its strong pro-net neutrality position:
- Publicly advocates for open internet principles
- Views paid peering as a necessary compromise, not an ideal solution
- Previously criticized ISPs for creating artificial bottlenecks
Implementation Timeline
According to Netflix’s statement:
- Agreement finalized in May 2014
- Additional interconnect capacity being installed
- Full deployment expected within days of announcement
The New Reality of Streaming Infrastructure
This development underscores how content providers and network operators are adapting to:
- Explosive growth in video traffic
- Consumer expectations for instant HD streaming
- The complex economics of internet infrastructure
The AT&T deal represents another step in Netflix’s strategy to guarantee quality of service while continuing to push for broader internet policy reforms.
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