Netflix confirms Time Warner interconnection deal

Netflix has confirmed that it has started paying Time Warner Cable for bandwidth to deliver its services to the cable operators’ broadband customers in North America.

As the leading streaming provider has similar agreements with Comcast, Verizon and AT&T, it now has deals with four of the country’s top broadband providers, accounting for about 68% of the high-speed broadband market.

“We reached an agreement with Time Warner Cable in June and began the interconnection between our networks this month,” said Netflix in a statement.

Netflix, which represents about one third of all downstream internet traffic in the US, was forced to enter into so-called paid-peering deals with Comcast and the other ISPs from last year, when they started to allow Netflix data to bottleneck during times of heaviest usage.

The leading streaming provider has argued against paying interconnection fees to ISPs, describing them as an “arbitrary tax”. It is currently lobbying the Federal Communications Commission (FCC) to examine broadband pricing and interconnection deals as it figures out new net neutrality rules.

Meanwhile, Comcast’s proposed takeover of Time Warner Cable is currently being scrutinised by regulators.