Netflix and Verizon announced Monday that they have reached a paid-peering agreement.
The two companies have linked up to improve the speed and quality of Netflix's streaming content for users, according to USA Today.
Netflix has been looking to improve connectivity, since its service creates almost one-third of downstream Internet traffic in North America. The company's Open Connect Program allows Internet Service Providers (ISPs) to connect directly at Internet exchanges, and also allows Netflix to install its own servers in the ISPs' networks to improve streaming quality for customers. However, Verizon and other major ISPs have not taken part in the Open Connect Program.
The deal follows Netflix's similar connection with Comcast, which was made two months ago, TIME reported.
"We have reached an interconnect agreement with Verizon that we hope will improve performance for our joint customers over the coming months," Netflix spokesperson Joris Evers said.
A Verizon spokesperson also confirmed the deal, but did not provide costs or other details.
The agreement gives Netflix a more direct connection between its servers and Verizon's network for better delivery of content. The movie and television stream provider said it reluctantly agreed to the deal and felt that they needed it to continue satisfying subscribers, USA Today reported.
The company has been openly expressing its belief that it should not have to pay ISPs for peering, Gigaom reported.
Netflix disapproved of the Federal Communications Commission's announcement last week that its new net neutrality, or Open Internet, rules would let content providers pay for Internet express lanes, USA Today reported.
"Where they are headed with this is down the wrong path, as ISPs get explicit legal permission to do deals with Internet companies," Evers said.
Netflix's new deal lets the provider get past bandwidth providers operating as third-party links between residential broadband companies and Internet companies, TIME reported.
The company released data earlier this month showing that between January and March, Comcast's web subscribers received faster connections while streaming videos on Netflix by 65 percent on average.
