The deal comes after Netflix signed a similar agreement with Comcast in February, agreeing to pay the US cable giant to gain direct access to its network to deliver a better quality service to Comcast subscribers.
News of the Verizon deal was broken by BTIG analyst Walter Piecyk and confirmed by Netflix spokesperson Joris Evers, who said that the agreement will be implemented over the coming months.
Verizon first confirmed that it was in talks with Netflix back in February, with CEO Lowell McAdam claiming it had been in talks with the firm for about a year. At the time, Netflix was also reported to be in advanced discussions with AT&T.
The news comes despite Netflix co-founder and CEO Reed Hastings recently calling for net neutrality to be “defended and strengthened”, claiming that internet service providers must provide “sufficient access to their network without charge” and that failure to do so would create a poor consumer experience and harm smaller internet service companies.
“Without strong net neutrality, big ISPs can demand potentially escalating fees for the interconnection required to deliver high quality service. The big ISPs can make these demands – driving up costs and prices for everyone else – because of their market position,” said Hastings in a blog post posted in March.
Terms of the Verizon deal were not disclosed.