There's no love lost between Netflix (NASDAQ:NFLX) and the broadband providers that it needs to serve up its streams. Its latest battle is with Verizon (NYSE:VZ), the telco giant that it played nice with earlier this year by entering into a deal that was supposed to improve the quality of its videos.
Netflix is now telling its subscribers when the Internet service provider is at fault for a lousy connection. Verizon is the company that's been singled out, but Netflix is apparently doing this for all broadband providers that seem to be dropping the ball.
Verizon has responded by denying Netflix's accusations, following that up with a cease-and-desist notice for Netflix to stop blaming the carriers when streaming quality goes south. This battle will continue, but both parties eventually need to play nice. They need one another. Netflix is a major reason speedy and reliable broadband is so popular these days, and Netflix can't succeed if service providers drop the ball.
Briefly in the news
And now let's look at some of the other stories that shaped our week.
- Baidu (NASDAQ:BIDU) filed its intention to sell senior notes. It may have seemed peculiar at first. China's leading search engine has minimal debt and $6.4 billion in cash and equivalents oozing out of its balance sheet. Credit ratings giant Moody's suggests that Baidu may be doing this to raise offshore cash that it can use for acquisitions and other interests overseas.
- Apple (NASDAQ:AAPL) hosted its annual Worldwide Developers Conference. There weren't any major announcements outside of significant updates for its two flagship operating systems. However, as the week came to a close, reports surfaced that Apple would finally be diving into the wearable computing market with a health tracker that would hit the market in October.
- FuelCell Energy (NASDAQ:FCEL) slumped after posting disappointing quarterly results. The fuel cell specialist posted a wider loss than analysts were expecting. Revenue also fell short of expectations. FuelCell Energy has seen its shares shed more than half of their value since peaking in March, but the stock has still nearly doubled over the past year.