Verizon, Netflix Team Up in Peering Agreement

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Verizon has signed a peering agreement with Netflix.

Image: Flickr, Eric Hauser

By Jason Abbruzzese2014-04-28 22:16:42 UTC

Netflix has reached a deal to pay Verizon to connect networks, the second such agreement aimed at improving the quality of the video streaming service.

Comcast signed a similar deal in February that included Netflix paying for the privilege of connecting networks. Such arrangements, known as "peering," improve data-intensive services like streaming video but are typically done without any money ever changing hands.

See also: What the FCC Net Neutrality Proposal Means for Your Internet

"We have reached an interconnect arrangement with Verizon that we hope will improve performance for our joint customers over the coming months," a Netflix spokesperson told Mashable.

A Verizon spokesperson also confirmed the deal but declined to discuss the terms.

Since February, Netflix has waged a very public campaign about net neutrality and the danger of such deals. Peering falls outside of the realm of previous Internet regulation including "net neutrality," which required that all Internet traffic be treated equally. Peering, since it is a direct connection, is closer to a hardware solution and does not fall under those rules.

Netflix has called for "strong net neutrality" regulation that would include peering agreements.

The agreement was first reported by BTIG analyst Walter Piecyk.

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Topics: Business, Media, netflix, peering, streaming video, verizon