The biggest subscription streaming service in the world – Netflix Inc. made a statement, saying that it reached an agreement with Verizon Communications Inc. over getting a more direct access to its FiOS broadband network. Currently, Netflix Inc. has mainly focused on making its video-streaming services more reliable for its customers, as well as providing the latter with higher quality.
According to a joint statement posted yesterday, Netflix Inc. has agreed to pay Verizon in order to get faster and more direct access to its network. The companies didnt disclose any of the deals financial terms, but a Verizon Communications Inc.s spokesman confirmed the agreement.
The company shared its hope that the newly-announced agreement will make services better for customers over the quarters that are yet to come.
Recently, Netflix has had some disagreement with large broadband providers such as Comcast and Verizon. Lately, the company has been focused on improving its already existing routes, which have become slower due to the large number of subscribers. At first Netflix offer to pay for access to the broadband networks of the larger providers was rejected, because the companies were concerned that its heavy traffic will overload their networks, too. As reported by the Wall Street Journal, both Verizon and Comcast said that Netflix traffic “puts on the last mile of network infrastructure to their customers homes.”
In February 2014, the company reached an agreement with Comcast Corp., which was estimated to millions of dollars on a yearly basis. The deal included getting a better access to Comcasts network. Mr. Reed Hastings, who is the Chief Executive Officer of Netflix Inc., has complained publicly about the necessity of paying for such connections and access to Comcast, calling it unfair. He also shared his disagreement with the Comcasts proposed acquisition of Time Warner Cable Inc.
Netflix Inc. lost 2.44% down to close at 314.21 dollars per share yesterday, marking a one-year change of +45.77%. According to the information published on CNN Money, the 30 analysts offering 12-month price forecasts for Netflix Inc. have a median target of 410.00, with a high estimate of 525.00 and a low estimate of 215.00. The median estimate represents a +30.49% increase from the last price of 314.21.
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