• Level 3 Lands Netflix Streaming Business, Will Double Its Storage Capability

    Thursday, November 11th, 2010

    Robin Wauters is the European Editor of tech blog The Next Web and lead editor of Virtualization.com. He was a senior staff writer at TechCrunch until his departure in February 2012. Aside from his professional blogging activities, he’s an entrepreneur, event organizer, occasional board adviser and angel investor but most importantly an all-round startup champion. Wauters lives and works in... → Learn More

    On-demand streaming of movies and TV shows is a booming business, and Netflix is positioned well to further capitalize on its pioneering digital streaming efforts. The company this morning confirmed earlier rumors that it’s going back to Level 3, after three years of Akamai, to serve as a primary content delivery network provider for online streams.

    The deal is aimed to accommodate Netflix’ expected future growth and to support storage for the company’s entire, ever-expanding library of content (currently more than 20,000 titles).

    As a result, Level 3 says it plans to accelerate investments in its CDN capacity. Level 3 says it intends to effectively double its storage capacity and add 2.9 Tbps of globally available CDN capacity, which is in addition to the 1.65 Tbps that was deployed in the third quarter of 2010.

    Over the course of November and December, the two companies will move the content library to Level 3 storage in preparation for serving traffic beginning Jan. 1, 2011.

    Netflix in a statement says its subscriber base will exceed 19 million in North America by year’s end, and that they expect more growth and international expansion in future years.

    Yesterday’s rumors of the Netflix/Level 3 deal had sent Level 3 Communications’ share soaring, and Akamai’s dropping. Expect that trend to continue.

    Company: Netflix
    Website: netflix.com
    Launch Date: 1997
    IPO: NASDAQ:NFLX

    With more than 23.3 million members in the United States and Canada, Netflix, Inc. is the world’s leading Internet subscription service for enjoying movies and TV shows. For $7.99 a month, Netflix members in the U.S. can instantly watch unlimited movies and TV episodes streaming right to their TVs and computers and can receive unlimited DVDs delivered quickly to their homes. In Canada, streaming unlimited movies and TV shows from Netflix is available for $7.99 a month. There are...

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    Website: level3.com
    Launch Date: 1985
    IPO: January 4, 1998, LVLT

    Global Crossing (NASDAQ: GLBC) is a leading global IP, Ethernet, data center and video solutions provider with the world’s first integrated global IP-based network. The company offers a full range of data, voice, collaboration, broadcast and media services delivered with superior customer service. Global Crossing provides services to enterprises (including approximately 40 percent of the Fortune 500); government departments and agencies; and 700 carriers, mobile operators and ISPs. It delivers converged IP services to more than 700 cities...

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