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Netflix Goes Back To Level 3 and Limelight

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Netflix Goes Back To Level 3 and Limelight

After Akamai (NASDAQ: AKAM) took Netflix's (NASDAQ: NYSE) business from Level 3 (NASDAQ: 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.

 

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