aNewDomain.net — Some Netflix subscribers have gone from poor streaming quality to potentially better quality. This is the lucky outcome for customers who subscribe to Comcast for Internet connectivity. Netflix has agreed to pay Comcast to allow fast-lane access to the interconnect networks, which gives video transmission higher quality over distance.
In short, the result will be an overall boost to the subscriber retention rate for Netflix. But Netflix deals don’t stop with Comcast. Now Netflix has inked a deal with Verizon. What does it all mean? Scroll below the fold to see how the Netflix deals with ISPs affect you.
The network traffic flow with relation to the interconnects of Verizon is critical to Netflix, too. The Netflix deal with Verizon Communications is to boost stream performance. This deal allows for direct access to the interconnects of the Verizon network. Direct access equals better performance. Better performance equals happier subscribers. Simple math, right?
This all happens on the heals of the discussed FCC proposal foreshadowing the end of net neutrality. According to Netflix, that’s a different issue that needs to be addressed. Still, Netflix wants to be able to send the video signal over long distances successfully. The only way is to ink deals with the ISPs to work with the interconnect networks such as Cogent. Netflix detailed this in its blog last week as it discussed “ISP tolls.”
What Does This Mean For Subscribers?
This is great news for Netflix subscribers, right? Well, maybe. The best things in life aren’t free. In this case, price increases could be expected for services rendered. Is this coincidental, as Netflix announced recently the increase in subscription packages for new subscribers? Skeptics are saying “Heck, no!” Queue the John C. Dvorak cranky geek music.
If you’re a current Netflix subscriber, do you see a new subscription rate in your future? Honestly, I do. And to a certain degree, I accept it. It’s the way of the business world, whether it’s online streaming content or the price of a gallon of milk.
For aNewDomain, I’m Ant Pruitt.