Netflix and Comcast have announced a new joint partnership in which Netflix will pay the internet and cable service provider for direct access to its broadband systems. Netflix previously worked with a middleman company called Cogent through which they bought their bandwidth, but now that company has been cut out of future proceedings.
The Wall Street Journal reports that the deal was originally struck in January, but it wasn't until today that the companies released a joint statement confirming the new relationship. January was also when a Washington, DC appeals court voided the anti-blocking and anti-discrimination rules that the FCC used to enforce net neutrality, which you can read more about thanks to our friends at Engadget.
Update: To clarify, although the net neutrality ruling and Netflix/Comcast deal both occurred in January, the two are separate affairs. The Netflix/Comcast deal is a paid peering agreement securing Netflix's access to Comcast's network, but the deal does not grant them preferential access. The story's text has been changed to reflect this.
PHILADELPHIA and LOS GATOS, Calif., Feb. 23, 2014
PHILADELPHIA and LOS GATOS, Calif., Feb. 23, 2014 /PRNewswire/ -- Comcast Corporation (Nasdaq: CMCSA, CMCSK) and Netflix, Inc. (Nasdaq: NFLX) 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.