Netflix and Comcast- the streaming race just got faster

Netflix has taken connectivity issues by the scruff of the fibre in a deal with the US’s largest cable provider, Comcast, which is aimed to ensure that its content is streamed faster and more seamlessly. The multi-year interconnection deal, shifts the streaming picture into what could become a bigger trend.

Netflix is buying what Comcast brands as “non-transit" access which gives Netflix direct access to Comcast's subscriber network. The deal does  not cover access  to Comcast's network for routing general Internet traffic, which is its "full transit" option.

Traditionally content providers such as Netflix have not been compelled to pay for access to the customers of an ISP, but as providers such Netflix increasingly consume bigger portions of the broadband pipe, broadband network owners have been looking for a way to monetize access.
In the US Netflix accounts for nearly 30 percent of all Internet traffic at peak hours.

The deal represents the first of what the industry anticipates will many  between cable providers and content streaming companies. From a technical standpoint, bringing content closer to its final destination,  without clogging up secondary networks is an ideal scenario. For video particularly, it decreases latency and optimizes bandwidth consumption.

For Comcast customers the deal will mean that they will have a faster and superior Netflix experience as it cuts out the ISP intermediary and simplifies the route from Netflix’s content servers to the client’s set-top box.

The agreement also came over a week after Comcast agreed to buy Time Warner Cable for US$45 billion, an acquisition that will extend Comcast’s reach to nearly one-third of American homes.

While many pundits have termed this  as disruptive move, it is simply a sign of the times. And for countries like Australia and New Zealand that are rolling our brand spanking new broadband infrastructure, expect to see the trend of direct content to infrastructure deals.