Cablevision Systems has cut a deal with Netflix — once perceived to be a serious threat to cable TV — to pipe Internet video directly into the MSO’s network.
The Bethpage, N.Y.-based operator is participating in Netflix’s Open Connect private content delivery network, which saves Netflix money on third-party CDN transit fees. In return, Netflix is granting subscribers to its $8 monthly service on Cablevision and other ISPs that connect into Open Connect access to higher-bandwidth “Super HD” and 3DTV content.
Cablevision is betting that connecting into the Netflix CDN will enhance the competitive profile of its broadband service, outweighing any video-on-demand revenue it may lose because of Netflix’s subscription VOD service.
“Optimum is committed to providing the highestquality TV, phone and Internet to our customers, and our new partnership with Netflix supports this critical objective,” Cablevision president and CEO James Dolan said in a statement. The agreement will result in “a higher- quality Netflix viewing experience for Optimum customers than Verizon or AT&T can provide,” he added.
ISPs can participate in Open Connect at no cost, according to Netflix. Clearwire, Frontier Communications, Google Fiber and Virgin Media are among those already with such direct connections.
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