Denver, CO, 06/11/2014 (Stocksntrade) – When Netflix, Inc (NASDAQ:NFLX) agreed to pay Comcast Corporation (NASDAQ:CMCSA) for the direct connection to its ISP’s network, there was an immediate improvement in its video performance. But the Verizon Communications Inc (NYSE:VZ) subscribers are not that lucky. Though Netflix & Verizon both have confirmed on 28 April that they both had struck the paid peering deal, the performance had continued to dip in May & could also remain poor for months while these companies upgrade their infrastructure. After it released its monthly speed index, NFLX wrote that Verizon FiOS is now down 2 slots & it ranks just behind the DSL providers – Frontier & Windstream.
Space For Improvement
In the United States, the Netflix performance on the Verizon FiOS dipped from 1.99Mbps in 2014 April down to 1.90Mbps in 2014 May, and the performance on Verizon DSL dropped from 1.08Mbps to 1.05Mbps. This is an average performance of all the Netflix streams on every ISP’s network. These dips are small, but they all show that this paid peering deal did not make any impact. Netflix has now continued to blame Verizon for the poor performance, and last week VZ also sent a cease & desist letter demanding that NFLX discontinue bad-mouthing the ISP. Netflix has declined to say why it is actually taking so much longer to set up the connections with Verizon in comparison to what it had taken with Comcast Corporation (NASDAQ:CMCSA).
Deal Under Scrutiny
In separate news, The NY State Public Service Commission is now seeking some public input on the CMCSA and TWC merger proposal. Under this proposal, Comcast Corporation (NASDAQ:CMCSA) will acquire the latter’s equity in lieu for the Comcast class-A shares. As had been announced earlier by Governor Andrew Cuomo on 19 May, the commission is now conducting a probe to determine whether this proposed merger is in the best-interest of TWC’s New York customers as well as the state in entirety.