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Verizon confirms Netflix talks following Comcast deal

NetflixBuilding4Following yesterday’s deal between Netflix and Comcast, telecom operator Verizon has confirmed that it is in talks with the subscription VoD company about striking a similar peering deal, while AT&T is reportedly also in advanced discussions with the company.

Verizon CEO Lowell McAdam said that his company has been in talks with Netflix for about a year.

Analysts remain divided on whether the deal with Comcast and other service providers will benefit or harm Netflix.

The streaming VoD company’s shares rose on the Comcast deal as analysts argued that the effect on Netflix’s bottom line could be neutral or positive, enabling it to cease payments to peering intermediary Cogent Communications and to benefit from service level agreements with access network providers.

Others have argued that companies such as Comcast are effectively local monopolies that could put their prices up over time, even if the terms offered to Netflix now are more favourable than those previously on the table.