Netflix, Inc. (NASDAQ:NFLX) is now faster for Comcast subscribers after the streaming company agreed to pay for a direct connection to Comcast’s broadband network. Comcast subscribers who are Netflix users experienced faster streaming of the videos in April after the deal between two companies earlier this year to enhance Netflix’s service quality.
According to the Netflix monthly speed index, streaming rates for Comcast subscribers shot up approximately 11% and Comcast surged to the third fastest major Internet service provider on the list.
Net Neutrality issue, does it hold now?
Comcast’s streaming speed has surged to 2.77 Mbps (versus 2.5 Mbps in March), behind only Cablevision and Cox. Comcast offers a direct connection to Netflix rather than receiving the service through intermediary companies like Cogent or Level 5. Previously, Netflix, Inc. (NASDAQ:NFLX) agreed to the deal to offer high-speed content streaming for customers, but later the company cited the deal as unfair, calling it against Net neutrality. Comcast, on the other hand, maintains that it charges to ensure that only Netflix and its subscribers deal with the cost associated with streaming its content rather than other customers of the Comcast.
The prickly relationship between the two companies became more evident when Netflix, Inc. (NASDAQ:NFLX) officially opposed Comcast’s decision to merge with Time Warner Cable last month. Netflix was quick to strike another deal with Verizon and the deal might also increase the speed that Verizon customers will enjoy.
Verizon’s high-speed FiOS service, with a speed of 1.99 Mbps, offers one of the best values in the middle-of-the-pack segment while the company’s DSL service with speed at 1.08 Mbps is one of the slowest nationally.
Netflix ranks internet service providers
In a separate development, Netflix revealed the performance of various Internet providers in Canada for the first time. Netflix, Inc. (NASDAQ:NFLX) ranks the speed of internet service providers on the basis of speed of its content streaming through these connections and included Canada for the first time.
BCE Inc.-owned Bell Canada’s fiber-optic service, Bell Fibe, was placed at the top as viewer’s experienced highest average Netflix, Inc. (NASDAQ:NFLX) viewing speed at 3.19 Megabits per second, while Rogers Cable Internet users only saw average speeds of 1.67 Mbps.