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Netflix Inks Multi-Year Deal with Level 3

Netflix has selected Level 3 Communications as its primary content delivery network (CDN). As part of the multi-year deal, Level 3 will support Netflix's operations for streaming movies and TV shows and will store Netflix's entire streaming library of more than 20,000 titles.

To handle the increased demands on its network, Level 3 aims to accelerate its plans to expand the size of its network, doubling storage capacity and adding 2.9 Terrabits per second (Tbps) of globally available CDN capacity.

The new capacity is in addition to the 1.65 Tbps that Level 3 deployed in the third quarter of 2010 and is intended to meet the current demand requirements from Netflix, which is expecting to have a subscriber base exceeding 19 million by the end of this year, as well as Netflix's future growth.

"Level 3's track record for delivery and network scalability were critical factors in our decision to work with Level 3 on a long-term basis," said Andrew Rendich, chief service and DVD operations officer at Netflix, in a statement. "We feel confident in their ability to quickly scale to meet demand as more and more Netflix members are watching instantly."