Even though Netflix has been vocal about net neutrality, the company has had to give in several times and enter into peering agreements with major Internet service providers like Comcast. Even though they would rather not. Netflix says that this is because Comcast was costing it customers.
You might remember that Netflix recently petitioned the FCC to deny Comcast’s acquisition of Time Warner Cable. There are several potential issues with the proposed business move and one of them was details on how Comcast’s past throttling actions have cost the company customers.
This is because Comcast began severely throttling customers’ Netflix experience earlier this year, which led to many frustrated and angry Netflix users, who according to Netflix, contacted the company in quadrupled numbers over average. Basically the streaming quality was so horrible and sometimes so impossible to watch that many customers dropped Netflix. Even though it wasn’t Netflix’s fault.
Losing these customers forced Netflix to enter into an agreement with Comcast after a few months, since they didn’t want to lose even more, and this has since led to similar agreements with Verizon and others. It isn’t a good position for Netflix to be in, for sure. Hopefully it will work out soon.