Netflix & Comcast Sign Web Traffic Deal

Thought the recent net neutrality rulings wouldn’t have rapid ramifications? Think again. Today, Netflix and Comcast announced a deal that would see Netflix pay the ISP to remove a bottleneck that slowed the video provider’s traffic. The deal is designed to provide ideal capacity for Netflix’s service, which has seen a dip in service after the landmark net neutrality ruling which allowed ISPs to throttle traffic. Nevertheless, Netflix now has a long-term agreement in place with Comcast – and likely, by extension after their merger, Time Warner – that will see their traffic issues fixed. Not coincidentally, Verizon has released a statement that they expect Netflix to pay them, too, if they want to see an improvement in service. The key, for many, is whether these new costs will be passed on to consumers, and if this happens whether those consumers will balk at higher prices.