Netflix Gets Star Treatment From Broadband Provide

Netflix Gets Star Treatment From Broadband Providers Abroad

Netflix has linked deals for set-top partnerships and network interconnections in its conversations with operators, saying direct interconnection is important to ensure good streaming quality.

While Liberty is open to integrating Netflix on its set-top boxes, it isn't inclined to shoulder all the costs of carrying Netflix's traffic without a fee, the people familiar with its thinking said. Liberty's U.K. affiliate Virgin Media does have a free "interconnection" deal with Netflix, but that was reached before Liberty's takeover of Virgin in 2013, the people said. Virgin also integrates Netflix as a set-top box app.

In Europe, the appetite to partner with Netflix is higher because broadband competition is intense in many markets and operators are eager to gain an edge over rivals. "We thought we would be stronger with Netflix being on the set-top box, rather than Netflix developing itself on other devices," said Christian Bombrun, vice president of marketing, entertainment and digital services at France's Orange SA, which has teamed with Netflix.