Net Neutered: Netflix Sucks Up To Time Warner Cable For Faster Streaming Service

As much as Netflix is loath to pay Internet Service Providers (ISPs) for uninterrupted access into homes of each provider's customers, the streaming service continues to ink peering deals so that its own subscribers can enjoy high quality videos and less buffering. One of the newest deals involves a reported agreement with Time Warner Cable (TWC).

According to Gigaom, the deal was initially agreed upon back in June, with implementation now being rolled out. With direct access into homes free from throttling, TWC customers should see an improvement in their Netflix streams with less dropouts and other unwanted behavior, especially during peak hours.

Image Source: Flickr (Michael Dougherty)

It's now believed that Netflix has direct interconnection deals in place with all four major U.S. cable companies -- AT&T, Comcast, Time Warner Cable, and AT&T. As far as Netflix is concerned, these deals should be unnecessary because cable companies are already charging their customers for high-speed access to online content.

Unfortunately, it's the customers who ultimately pay the price when arguments break out between ISPs and third-party services like Netflix. Without a deal in place, customers have to content with crappy video feeds, dropped connections, and plenty of buffering. And with the costly deals in place, price hikes are likely, such as the recent $1 increase for new subscribers.