Netflix reaches streaming traffic agreement with Comcast

Deal ends dispute that saw average Netflix streaming speeds decline nearly 30 percent in the past couple of months.

(Credit: Netflix)

Netflix and Comcast have reached an agreement aimed at smoothing the streaming of Netflix content to the cable company's customers, ending a dispute that included suggestions of throttled traffic.

The video-rental company has agreed to pay Comcast for direct access to its broadband network, the newspaper reported. The agreement comes less than two weeks after Comcast announced a $45 billion deal for Time Warner Cable, a merger that if approved could create a cable empire serving 33 million customers across the country.

The agreement was revealed in a joint announcement that did not disclose the terms of the deal'

Comcast and Netflix today announced a mutually beneficial interconnection agreement that will provide Comcast's U.S. broadband customers with a high-quality Netflix video experience for years to come. Working collaboratively over many months, the companies have established a more direct connection between Netflix and Comcast, similar to other networks, that's already delivering an even better user experience to consumers, while also allowing for future growth in Netflix traffic. Netflix receives no preferential network treatment under the multi-year agreement, terms of which are not being disclosed.

The companies have for months been locked in a dispute over content Netflix streams to its customers over Comcast's broadband network. While Netflix wanted to connect to Comcast's network for free, the cable giant sought compensation for the heavy traffic that Netflix users generate. Netflix released data last month that showed the average Netflix streaming speed decline 27 percent since October.