Netflix confirms Time Warner Cable payment

Subscription on-demand service Netflix has begun paying another US cable provider fees to guarantee better bandwidth for its subscribers.

A terse Netflix statement issued overnight read: “We reached an agreement with Time Warner Cable in June and began the interconnection between our networks this month.”

This comes after similar agreements with Comcast Communications, Verizon and AT&T in the US – meaning Netflix now pays fees to all the top US internet service providers.

The cable cos began openly demanding payment from Netflix, which accounts for about a third of all internet traffic in North America, to provide better streaming quality for its TV shows and movies earlier this year.

Subsequently, Netflix agreed to pay Comcast – which is acquiring TWC for about US$45 billion – for improved service, which was followed by further agreements.

However, Netflix CEO Reed Hastings has slammed the ISPs’ strategy, which his company considers as a “toll” that inhibits principles of net neutrality that dictate web providers should nottier services.

Tech website Gigaom broke the news of the Time Warner Cable agreement yesterday.