Netflix and Comcast have reached an agreement aimed at smoothing the streaming of Netflix content to the cable company’s customers, ending a dispute that throttled traffic at peak times.

The video-rental company has agreed to pay Comcast for direct access to its broadband network, according to the Wall Street Journal.

The agreement was revealed in a joint announcement that did not disclose the terms of the deal”

Comcast and Netflix today announced a mutually beneficial interconnection agreement that will provide Comcast’s U.S. broadband customers with a high-quality Netflix video experience for years to come. Working collaboratively over many months, the companies have established a more direct connection between Netflix and Comcast, similar to other networks, that’s already delivering an even better user experience to consumers, while also allowing for future growth in Netflix traffic. Netflix receives no preferential network treatment under the multi-year agreement, terms of which are not being disclosed.

Under the so-called “paid peering” deal, Netflix will be allowed to connect directly to Comcast’s network instead of going through intermediaries, as it formerly did.

This is an interesting scenario and could pave the way for more deals to ensure decent internet speeds.