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Netflix Gambles With AT&T Agreement For Faster Connection

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Netflix Gambles With AT&T Agreement For Faster Connection
Netflix and AT&T in May signed a paid peering deal. Netflix hopes to improve speed and performance over AT&T's network.
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Despite its griping over the subject, Netflix has signed yet another paid peering deal — this time with AT&T. (Getty Images)

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Mashable cites unnamed sources who chose not to share the financial terms of the deal. AT&T confirmed the deal to Mashable over email. The company says the agreement was reached in May, and is now "beginning to turn up the connections."

A paid peering deal allows Netflix direct access to AT&T's network. This — in theory — makes for a smoother, swifter connection for Netflix customers on AT&T's network. 

​​It's the same kind of agreement Netflix made with Verizon and Comcast. And this is where that "in theory" part comes in. Netflix regularly ranks Internet Service Providers according to their speed. As of June, Verizon's Internet services are still coming up short, but Comcast speeds have improved. (Getty Images)

So a paid peering deal seems to be a bit of a gamble — and it's a gamble not everyone is sold on.

A writer for Gizmodo imagines a future in which Netflix's agreements translate to greater costs for the customer. Oh wait, that's kind of already happened.

While there's been no official "connecting of the dots," Netflix did raise its streaming subscription by $1 back in May. (Getty Images)

And CNET points out Netflix's growing list of agreements has resulted in growing concerns for consumer advocacy groups and the FCC ... because Net Neutrality. 

In early June the Federal Communications Commission announced it would investigate Netflix's paid peering deals. Adding AT&T to the list will probably serve to exacerbate the situation. But hey, at least you've got an improved connection, right?