Netflix (Nasdaq: NFLX) said it is partnering with Cablevision (NYSE: CVC) to place storage appliances near its Optimum network, which would allow for the delivery of "super HD" programming and 3D content to Cablevision customers who also subscribe to Netflix.
Cablevision is the first U.S. cable MSO to join the Netflix Open Connect content delivery network, which also includes Mexico's Telmex, Canada's Telus and Virgin Media and British Telecom in the United Kingdom. Netflix says it doesn't charge ISPs in the program fees to receive its online video programming directly at interconnection points.
News of Cablevision joining Netflix Open Connect comes less than one month after Netflix announced that Netflix subscribers who are customers of Comcast (Nasdaq: CMCSA) and Cablevision rival Verizon (NYSE: VZ) see download speeds for Netflix TV shows and movies that are faster than those delivered by Cablevision and other broadband providers.
Verizon's FiOS Internet placed second in Netflix's rankings of the fastest ISPs in December, averaging speeds of 2.19 Mbps in its delivery of Netflix content. Cablevision placed fifth, averaging 2.15 Mbps.
Netflix said its Super HD videos offer a better picture than 1080p high-definition programming, but it didn't detail how many lines of resolution it delivers to ISPs that are part of the Open Connect CDN.
Cablevision CEO Jim Dolan said in a statement that the company would be able to deliver a better experience to its Optimum customers than subscribers of Verizon and AT&T (NYSE: T). "Optimum is committed to providing the highest-quality TV, phone and Internet to our customers, and our new partnership with Netflix supports this critical objective," Dolan said.
Last year, Netflix began pitching cable MSOs the idea of bundling Netflix streaming video subscriptions with pay TV programming packages. But it hasn't yet struck deals with providers to sell Netflix to subscribers.
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