Netflix, Inc. (NASDAQ:NFLX) has been waging a war against companies like AT&T Inc. (NYSE:T) in the past against the fees the internet service providers ask for when they stream content to Netflix, Inc. (NASDAQ:NFLX) users. So, it comes as a surprise when Netflix, Inc. (NASDAQ:NFLX) signed a deal to pay AT&T Inc. (NYSE:T) for smoother delivery of its content to users, which Reuters reported in an article.
The deal was reportedly signed in May, but the financial terms of the deal have been kept a secret. Earlier, Netflix, Inc. (NASDAQ:NFLX) had asked the U.S. Federal Communications Commission to review the issues related to internet providers asking for a fee to stream its content smoothly to users, which Netflix, Inc. (NASDAQ:NFLX) has deemed as ‘tolls’.
Both, Netflix, Inc. (NASDAQ:NFLX) and AT&T Inc. (NYSE:T) are now working on building out new network connections for Netflix, Inc. (NASDAQ:NFLX)’s content to be delivered directly to AT&T Inc. (NYSE:T)’s servers. This is the third such deal that Netflix, Inc. (NASDAQ:NFLX) has signed with a major U.S. based internet service provider, the other two were with Verizon Communications Inc.(NYSE:VZ) in April and Comcast Corporation (NASDAQ:CMCSA) in February.
