Netflix, Inc. Ordered By Verizon Communications Inc. To Stop Blaming It

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Verizon Communications Inc. (NYZE:VZ) has expressed disappointment over Netflix, Inc. (NASDAQ:NFLX)’s accusation that customers are facing streaming issues due to inadequacies in the Internet service provider’s service. Verizon has sent a letter of cease and desist to Netflix, asking the streaming company to stop making false accusations that have the “potential to harm the Verizon brand” and engaging in “deceptive behavior.”

Blame game between Netflix and Verizon

Earlier this week, Netflix, Inc. (NASDAQ:NFLX) showed Verizon Communications Inc. (NYSE:VZ) customers a notice that the buffering issues they were experiencing were because of too much traffic on the Verizon network. The fuss started when Netflix customer Yuri Victor (Vox Media developer and former Washington Post staffer) tweeted this message that popped up on the buffering screen: “The Verizon network is crowded right now. Adjusting video for smoother playback.”

Verizon Communications Inc. (NYZE:VZ) General Counsel Randal Milch wrote in a letter to Netflix, Inc. (NASDAQ:NFLX) General Counsel David Hyman, “There is no basis for Netflix to assert that issues with respect to playback of any particular video session are attributable solely to the Verizon Network.”

Milch said that major problems in streaming the content might be due to Netflix, Inc. (NASDAQ:NFLX)’s own issues and the companies it uses to get its content to Verizon. Milch said that the streaming service knew that some Internet providers have congestion issues with some IP networks; still, it continued sending traffic over those congested routes. Milch said that he hopes Netflix doesn’t treat every network partner this way.

Verizon demands more proof

Netflix, Inc. (NASDAQ:NFLX), on the other hand, claimed that it prefers transparency regarding streaming services and stated that it is devising ways to allow consumers to know the reason for congestion on their broadband provider’s network.

Netflix spokesman Jonathan Friedland said, “We are trying to provide more transparency, just like we do with ISP Speed Index, and Verizon is trying to shut down that discussion.”

The letter also noted that Netflix, Inc. (NASDAQ:NFLX) should offer all evidence and documentation to prove that it was the sole problem of Verizon that caused glitches in its streaming content. Netflix responded to Verizon, saying that the Internet provider is trying to hide information related to network practices.

Recently, Netflix, Inc. (NASDAQ:NFLX) and Verizon Communications Inc. (NYZE:VZ) entered into a deal under which the streaming company would directly connect with the Internet service provider’s pipes to offer better streaming of Netflix content to consumers.

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About the Author

Aman Jain
Aman is MBA (Finance) with an experience on both Marketing and Finance side. He has worked as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, reviewing tech gadgets, playing PC games and cricket. - Email him at

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