In recent past streaming of video and music content took up an increasingly large part of world-wide internet traffic. As a consequence some customers of streaming services experienced slow service during peak times. The solution would be more bandwidth but who is going to pay for the upgrade?
Netflix, the largest provider of streamed movie and tv content in the US has now struck a deal with Comcast, serving nearly a third of US households with internet access, and will pay them an undisclosed sum to guarantee reliable internet speeds for Netflix customers. If this deal serves as a precedent – which seems very likely to happen – many streaming services around the world will have to review their business model.