Netflix reported this week that its streaming speeds increased 11% from January. This increase was preceded by 4 consecutive months of decline. Instead of delivering its traffic through third parties, such as Cogent Communications, as Netflix has done previously, Netflix now pays Comcast to feed its videos directly. Comcast and other Internet service providers had been claiming that Netflix was unfairly eating up its bandwidth, particularly during peak TV viewing hours. During prime time, Netflix can account for as much as a third of internet traffic. 
Unfortunately for Netflix subscribers, Comcast appears to be unwilling to allow Netflix direct access to their network without due financial compensation. Netflix is frustrated with Comcast as it is been said that Comcast is extorting Netflix by not allowing the company to stream at optimum speed unless it pays for premium access. Subscribers of Netflix are worried that this financial unfair play will result in Netflix being forced to hike their prices to compensate for the increased expenditures to Comcast.
Verizon and AT&T are taking Comcast's lead on this issue and our looking in to getting their own profitable deals for their streaming services, which rank in the top ten fastest channels in the country. It will be interesting to see over time how this tug-of-war affects the industry and whether or not these deals become commonplace or go extinct. Whatever happens, it does not appear that consumers will be happy as it seems certain that prices will go up.
