The simple truth is Verizon is not committed to carrying the traffic consumers pay to recieve until Netflix folds and agrees to pay Verizon to carry the content. Rumors that a deal had been struck seem confused by Netflix recent rollout of enhancements directly identifying to consumers that streaming is impaired by Verizon performance issues.
This Verizon/Netflix problem is evidenced by:
- Massive time of day varation in netflix downspeeds (13 mbps supporting 3D available off peak hours, .865 mbps supporting a completely unacceptable image during peak)
- The lack of this variation through other ISP providers
And supported by indirectly:
- The public ongoing feud between Verizon and Netflix over transport
- Reports of 80+% saturation of the inbound Verizon switches responsible for Netflix traffic during peak hours
- Improvements in performance recognized by Verizon customers who take elaborate measures to route traffic to different switchs
And frustrated by a disinformation campaign by Verizon:
For example, as mentioned above Netflix is now identifying poor Verizon performance as the source of streaming problems through their applications. Responding to this development Verizon PR rep Robert Elek replies “This is a PR stunt. We’re investigating this claim but it seems misleading and could confuse people.”
No Bob, it's not a stunt. Verizon is unable to provide usable Netflix service during peak hours. It is fine to acknowledge this and share your plans to continue underserving your customers until Netflix pays for transit, but please don't suggest it is somehow untrue.
Finally, one can't help wonder how Verizon's floundering movie streaming service compicates their corporate decision making. Unfortunately their offering is vastly inferior in content and quality - i.e. they are the only pay streaming service that doesn't support surround sound.
However the dollars eventually fall Verizon and Netflix need to adopt a policy of honesty on this issue opening the door for a much needed resolution.