In a landmark deal, Netflix has agreed to pay Comcast for direct access to the company's broadband system. The announcement comes after months of dispute between Netflix and broadband providers about who should pay for increasing bandwidth loads.
If you haven't been following the streaming wars, here's the basic gist: As Netflix has grown, an argument over who should pay for the increasing loads—the broadband provider or Netflix—has emerged. In the meantime, Netflix has been buying its bandwidth from a company called Cogent, which acts as the middle man between Netflix and Comcast or Verizon, which in turn deliver the stream to you. But that agreement hasn't worked out very well.