Quantcast
Connect with us

After Comcast deal, Netflix may need to renegotiate with Verizon and AT&T

Published

on

By Liana B. Baker and Lisa Richwine

(Reuters) – Netflix Inc, which agreed to pay Comcast Corp for faster video delivery, may have to make similar arrangements with other broadband providers to make sure its customers get trouble-free access its streaming movies and TV shows.

Verizon Communications’ chief executive said on Monday he expects Netflix will pay the telecom company for faster speeds after Netflix customers complained about slow connections to stream TV shows and movies with Verizon’s FiOS service.

ADVERTISEMENT

AT&T spokesman Mark Siegel said in a statement on Monday that “we’re in discussions with Netflix to establish a more direct connection between our networks, similar to agreements we have with others, so that AT&T broadband customers who use Netflix can enjoy an even better video experience.”

Talks with telecom companies that provide broadband Internet access gained momentum after Sunday, when Netflix agreed to pay Comcast Corp for faster speeds.

Evercore Partners analyst Alan Gould said the agreement with Comcast removed uncertainty and likely involved small payments since Netflix agreed voluntarily to the arrangement.

“This is probably a template for the deal that will get done with other broadband providers,” said Gould, who has an “equal weight” rating on Netflix shares. “We are assuming the payments are not going to materially change the business model.”

ADVERTISEMENT

Netflix shares rose 3.4 percent to a record $447.

Verizon CEO Lowell McAdam said on CNBC, where he discussed Verizon’s talks with Netflix, that the two companies have been in negotiations for a year.

These deals hinge on whether Netflix can set up direct access to Verizon, known as an “interconnect agreement,” rather than go through a third party. Verizon provides millions of U.S. customers with its FiOS broadband service and Netflix speeds have slowed on that network in recent months, leading to complaints.

ADVERTISEMENT

Many providers including Cox, Cablevision and Google Fiber directly connect to the Netflix network through a service the streaming company developed called Open Connect. Those providers have not seen their speeds deteriorate in recent months.

But others, including AT&T and Verizon, have opted not to use Open Connect.

Shares of Cogent Communications, one of the companies that took care of the Internet traffic exchange between the Comcast and Netflix networks, fell 7 percent on Monday as investors worried that these deals would take away Cogent’s business.

ADVERTISEMENT

Cogent’s chief executive Dave Schaeffer played down the effect of the Comcast-Netflix agreement on its business and reaffirmed the company’s annual revenue forecast.

“It doesn’t mean that revenue goes away from Cogent. It just means that some of the growth in revenue may not occur through us,” he said.

McAdam, the Verizon CEO, spoke out in favor of telecom companies signing deals with Netflix.

ADVERTISEMENT

“It shows you don’t necessarily need a lot of regulation in a dynamic market here. Doing these commercial deals will get good investment and good returns for both parties,” McAdam said.

Asked about discussions with Verizon or other providers, Netflix spokesman Joris Evers said “we talk to all major ISPs all the time to make sure Netflix users get the best possible experience.”

(This version of the story corrects the analyst rating on Netflix in paragraph 6.)

(Reporting by Liana B. Baker in New York, Lisa Richwine in Los Angeles and Diane Bartz in Washington; Editing by Sophie Hares and David Gregorio)

ADVERTISEMENT

[Image: “Teenagers enjoy movie night watching laptop” via Shutterstock]


Report typos and corrections to: [email protected].
READ COMMENTS - JOIN THE DISCUSSION
Continue Reading

Facebook

Science now supports the deadly serious warnings the Victorians gave about sleep

Published

on

“Sleeplessness is one of the torments of our age and generation.” You might presume that this is a quote from a contemporary commentator, and no wonder: the World Health Organisation has diagnosed a global epidemic of sleeplessness, and it is difficult to escape accounts, both popular and scientific, of the dangers to health of our 24/7 lifestyle in the modern digital age. But it was actually the neurologist Sir William Broadbent who wrote these words, in 1900.

So our concerns are evidently far from new. The Victorian era experienced not only the extraordinary upheavals of the industrial revolution, but also the arrival of gas and then electric lighting, turning night into day. The creation of an international telegraph network similarly revolutionised systems of communication, establishing global connectivity and, for groups such as businessmen, financiers and politicians, a flow of telegrams at all hours.

Continue Reading

Breaking Banner

The new Rambo movie is essentially a MAGA fever dream of bigotry

Published

on

"Rambo: Last Blood," the latest in the long-running franchise about a traumatized war veteran (Sylvester Stallone) turned on-demand badass, is less an escapist action movie and more a dramatized manifestation of the most notorious sentences from Donald Trump's presidential campaign announcement speech: "They're bringing drugs. They're bringing crime. They're rapists. And some, I assume, are good people." Even for a series that has always been shaped by a right wing worldview, the only reason for this latest sequel to exist — besides generating profits from die-hard Stallone fans — is to validate MAGA-world bigotries about Mexicans.This article first appeared in Salon.

Continue Reading
 

Facebook

University of Texas Rio Grande Valley to provide free tuition for students with household incomes under $75,000

Published

on

The tuition assistance program is expected to cover tuition and fees for about half of UTRGV students in the 2020-2021 academic year.

Beginning in the next academic year, the University of Texas Rio Grande Valley will provide free tuition and cover mandatory fees for qualifying students with household incomes under $75,000, the university announced Monday.

The UTRGV Tuition Advantage program is expected to alleviate tuition costs for more than half of the university's 21,459 undergraduate students, UTRGV President Guy Bailey said in the release. Funding will be available to incoming, returning and transfer in-state undergraduate students.

Continue Reading
 
 
 

Copyright © 2019 Raw Story Media, Inc. PO Box 21050, Washington, D.C. 20009 | Masthead | Privacy Policy | For corrections or concerns, please email [email protected]

Help Raw Story Investigate and Uncover Injustice. Join Raw Story Investigates for $1 and go ad-free.
close-image