Netflix Pays AT&T for More Speed

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As part of a hotly debated issue that is emerging as a key differentiator, Netflix is now paying AT&T a fee to ensure that its content is delivered to users without caching or frame freezes. Netflix has already reached similar agreements with Verizon and Comcast.

Earlier this year, Reed Hastings, Netflix chief executive officer, said he was against ISPs demanding a fee to maintain video quality. However, in the end Netflix agreed to pay the toll to ensure a quality experience for its users.

This “pay-for-fast play” strategy looks to be the way of the future, as bandwidth speed and user experience are critical to any OTT service success.

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