Netflix Signs Interconnection Deal with AT&T

DALLAS: Netflix has agreed to pay AT&T for a direct connection to its network, a move that is meant to ensure the smooth delivery of streaming video.

Netflix engaged in a similar deal with Comcast in February and another with Verizon in April. The so-called "interconnection agreement," which was struck in May, is intended to reduce video buffering and speed up streams. The financial terms of the deal have not been disclosed.

A spokesman from AT&T commented: "We reached an interconnect agreement with Netflix in May and since then have been working together to provision additional interconnect capacity to improve the viewing experience for our mutual subscribers. We’re now beginning to turn up the connections, a process that should be complete in the coming days."