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Netflix paying Verizon for more direct Internet connection in effort to improve video quality

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FILE - In this July 20, 2010 file photo, a Netflix customer uses Netflix in Palo Alto, Calif. Netflix will pay Verizon Communications to help clear up some of the congestion that has been bogging down its Internet video service. The deal marks the second time in less than three months that Netflix Inc. has anted up for a more direct connection to a major Internet service, even though CEO Reed Hastings objects to having to pay for better access. (AP Photo/Paul Sakuma, File)

SAN FRANCISCO – Netflix will pay Verizon Communications to help clear up some of the congestion that has been bogging down its Internet video service.

The deal marks the second time in less than three months that Netflix Inc. has anted up for a more direct connection to a major Internet service, even though CEO Reed Hastings objects to having to pay for better access.

Netflix negotiated a similar arrangement with Comcast Corp. in February.

The financial details of Netflix’s partnerships with Comcast and Verizon Communications haven’t been disclosed.

Netflix is reducing its reliance on third-party vendors to deliver video to Internet service providers because the streaming speeds of its movies and TV shows have been slowing in recent months.

Verizon ended March with about 9 million subscribers to its high-speed Internet service.

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