Netflix Reaches Interconnection Deal With Verizon

Netflix said it reached a commercial deal for direct access to Verizon's network, a step that will likely improve the streaming-video service's performance even as its chief executive complains publicly about having to pay for such connections. The terms weren't disclosed.

Netflix accounts for as much as a third of North America's peak Internet traffic, according to network gear maker Sandvine. Thousands of networks link directly to broadband companies to share traffic more efficiently, and some have paid for that access. Netflix argues that such arrangements represent a slippery slope that gives broadband providers too much leverage. Chief Executive Reed Hastings said the company will keep agreeing to such deals "reluctantly" to ensure adequate video service. The company has asked regulators to step in and protect interconnections that are free of payments.