Netflix confirms Time Warner Cable payment

SVOD service Netflix has begun paying another US cable provider fees to guarantee better bandwidth for its subscribers.

A terse Netflix statement issued overnight read: “We reached an agreement with Time Warner Cable in June and began the interconnection between our networks this month.”

This comes after similar agreements with Comcast Communications, Verizon and AT&T in the US – meaning Netflix now pays fees to all the top US internet service providers.

The cable cos began openly demanding payment from Netflix, which accounts for about a third of all internet traffic in North America, to provide better streaming quality for its TV shows and movies earlier this year.

Subsequently, Netflix agreed to pay Comcast – which is acquiring TWC for about US$45 billion – for improved brosdband service, which was followed by further agreements.

However, Netflix CEO Reed Hastings has slammed the ISPs’ strategy, which his company considers as a “toll” that inhibits principles of net neutrality that dictate web providers should not tier services. In one salvo, Netflix said buffering issues were due to Verizon’s “crowded network”.

Tech website Gigaom broke the news of the Time Warner Cable agreement yesterday.