Netflix Signs Multi-Year Deal With Level 3

Level 3 Communications, Inc. has been selected to serve as a primary content delivery network (CDN) provider for Netflix, Inc. to support the company’s streaming functionality and to support storage for the entire Netflix library of content.

As a result of the deal, Level 3 has accelerated plans to further invest in its CDN capacity. Level 3 will double its storage capacity and add 2.9 Terabits per second (Tbps) of globally available CDN capacity, which is in addition to the 1.65 Tbps that was deployed in the third quarter of 2010.

The CDN augment will provide the headroom needed to meet demand requirements from Netflix now and to accommodate future growth. Netflix says its subscriber base will exceed 19 million in North America by the end of this year and that they expect more growth and international expansion in future years.

"Level 3’s track record for delivery and network scalability were critical factors in our decision to work with Level 3 on a long-term basis," said Andrew Rendich, chief service and DVD operations officer with Netflix. "We’ve been impressed with their speed and consistency, and we feel confident in their ability to quickly scale to meet demand as more and more Netflix members watch instantly."

In addition to supporting Netflix for streaming movies and TV shows, Level 3 will store the entire Netflix streaming library of more than 20,000 titles. Over the course of November and December, the two companies will move the library to storage with Level 3 in preparation for serving traffic beginning Jan. 1, 2011.

"One of the primary advantages of owning our network is the agility it affords – we’re able to scale, augment and, ultimately, better control the performance of our CDN," said Mark Taylor, vice president of Content and Media. "We’re committed to ensuring that our performance consistently exceeds our customers’ expectations, and we look forward to working with Netflix to serve their millions of streaming customers for years to come."

Level 3’s network is designed to help customers control quality from Creation to Consumption. The company’s CDN combines the advantages of an Internet backbone with a sophisticated, proven content delivery platform. This combination connects customers to high-performance, highly scalable services and simplifies delivery. And with one of the world’s largest IP networks, Level 3 is focused on providing an optimal path to connect content to end users.