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Level 3 Communications, Inc. Message Board

  • be_careful_outdere be_careful_outdere Nov 11, 2010 11:52 AM Flag

    Akamai Says It Will Continue To Stream Video For Netflix

    11/11/2010 11:38am
    Akamai Says It Will Continue To Stream Video For Netflix
    Posted by Eric Savitz

    Akamai (AKAM) continues to provide video streaming services to Netflix (NFLX) under a multi-year agreement, a spokesman for the company said this morning in an interview with Tech Trader Daily.

    Earlier today, Level 3 (LVLT) announced that it has signed an agreement to be a primary content delivery network provider to Netflix. That raised obvious questions about the state of the relationship between Netflix and its other CDN partners - Akamai and Limelight Networks (LLNW). And while the release seemed to imply that Level 3 has improved its position against the other two, Akamai spokesman Jeffrey Young contends nothing has really changed.

    Indeed, Netflix earlier this week said it has chosen to take a multi-vendor strategy, working with all three companies. Young today says that Akamai, which announced a relationship with Netflix in March, “continues to very much be a primary CDN as well” for Netflix. He says they continue to stream video for Netflix under a multi-year agreement - he says they provide a “large double-digit percentage” of Netflix’ overall video streaming traffic. “And we will continue to do that for them,” he says.

    Young adds that Akamai is also working with Netflix on providing other advanced services that go beyond video streaming, including security and other services.

    On another note, Level 3 noted in its release that it would be hosting Netflix’ entire streaming library; but Young notes that this is not an exclusive situation - in order to provide CDN services to the company, hosting the entire library is a requirement. “You have to cache the whole library to be a CDN for them,” he says. “Everyone involved is caching the entire library. It is not a differentiator.”

    Adds Young: “We have as much a seat at the table as anyone here.”

    In today’s trading:

 
LVLT
46.85-0.65(-1.37%)10:51 AMEDT

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