After Akamai AKAM took Netflix's NYSE business from Level 3 LVLT earlier this year and became the primary CDN for Netflix, it appears that Netflix has chosen to return to Level 3 and Limelight, according to Seeking Alpha.
Limelight announced last week that Netflix was extending its contract, and Level 3 is expecting to see revenues beginning in 2011. Dan Rayburn from Seeking Alpha emailed a question Netflix about this ordeal, to which the company responded:
"It's no secret that Netflix has a multiple vendor strategy. We continue to have an ongoing relationship with Netflix but we don't comment on the specifics of customers, contracts or other providers."
Netflix had apparently moved over to Akamai for lower pricing, but never really got the service it wanted. And since Netflix is the best at what it does, a decision like this would be made solely on continuing to provide the best Internet streaming available.
Netflix's business to Akamai could be estimated at around $10-$15 million, Rayburn says.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Posted In: NewsContractsM&AakamaiAlternative Carriersdan rayburnInformation TechnologyInternet Software & Serviceslevel 3limelightNetflixSeeking AlphaTelecommunication Services
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in