Netflix (NFLX) Claims Verizon (VZ) is Already Throttling Broadband Speeds
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Netflix (Nasdaq: NFLX) is lower Wednesday following news that its feud with broadband providers might already be taking a toll.
According to the WSJ, Netflix said broadband speeds via Verizon Communications' (NYSE: VZ) fiber-optic FiOS service were down 14 percent last month. The data comes following a recent FCC ruling that would allow broadband providers to charge different companies different rates depending on how much load their services puts on the system.
Netflix is aiming for broadband companies to carry its new video-distribution network without having to pay fees, though the broadband companies aren't too keen on that idea. Right now, most of Netflix's traffic is routed across Internet intermediaries, but the company said it does plan out optimal routing to give viewers that best experience possible.
So, the two sides are in debate over who should pay for equipment upgrades to ensure the best streaming experience possible. The debate will likely be taken into consideration as Comcast (Nasdaq: CMCSA) opts for regulatory clearance to acquire Time Warner Cable (NYSE: TWC).
According to the WSJ, Netflix said broadband speeds via Verizon Communications' (NYSE: VZ) fiber-optic FiOS service were down 14 percent last month. The data comes following a recent FCC ruling that would allow broadband providers to charge different companies different rates depending on how much load their services puts on the system.
Netflix is aiming for broadband companies to carry its new video-distribution network without having to pay fees, though the broadband companies aren't too keen on that idea. Right now, most of Netflix's traffic is routed across Internet intermediaries, but the company said it does plan out optimal routing to give viewers that best experience possible.
So, the two sides are in debate over who should pay for equipment upgrades to ensure the best streaming experience possible. The debate will likely be taken into consideration as Comcast (Nasdaq: CMCSA) opts for regulatory clearance to acquire Time Warner Cable (NYSE: TWC).
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