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Netflix Movie Speeds Slow Over Internet Feud with Verizon

Feb 21, 2014 09:42 AM EST | By Staff Writer

Your Netflix may just be slowing down--and a dispute between Verizon and Netflix may be to blame. While streaming speeds for Verizon FiOS customers dropped by 14 percent between December and January, Netflix speeds on other providers remained steady, according to CNN. Why? It's because the broadband company is demanding payment in exchange for services.

Netflix has been at odds with Verizon and other broadband providers for months now, according to The Wall Street Journal. The issue at stake is how much Netflix streaming content that they will carry without being paid additional feeds. Now, the conflict seems to have come to a boil; Verizon speeds are slowing.

When you stream a video on your computer or TV from Netflix, the video must first pass through several bandwidth companies to get to you, according to Business Time. In order to ensure the reliable flow of traffic on the Internet, many of these companies strike agreements in which they agree to carry each other's traffic.

Yet Netflix has exploded onto the scene. With the amount of traffic it receives, Netflix is gobbling up high-bandwidth services. In fact, companies like Verizon and Time Warner Cable are increasingly demanding payment from intermediaries like Level 3 and Cogent, according to Business Time.

Currently, Netflix and Verizon are trying to hash out a deal. Yet it doesn't look good so far; neither side seems like it's willing to yield. Fortunately, the Federal Communication Commission announced on Wednesday that it plans to issue new rules "to preserve Internet freedom and openness" under a legal framework, according to CNN. In the meantime, though, expect some slower speeds while you're trying to watch "House of Cards."

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