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LVLT Tapped as Primary CDN for Netflix

By Market News Video Staff, Thursday, November 11, 2:04 PM ET

Level 3 Communications (NYSE:LVLT) announced today it has been chosen as a primary content delivery network for Netflix (NASDAQ:NFLX), as had been rumored earlier in the week. Level 3 said it has accelerated plans to invest in its CDN capacity, doubling its storage capacity and adding 2.9 terabits per second of global availability.

Level 3 shares traded higher on the news, up 8.7% today.

LVLT is part of the iShares Dow Jones U.S. Telecommunications Sector index Fund (AMEX:IYZ), at 1.97% of the portfolio. AT&T (NYSE:T), at 15.29%, is the top stock in the fund, followed by Verizon (NYSE:VZ), at 11.55%.

Content delivery network rivals to Level 3, Akamai (NASDAQ:AKAM) and Limelight Networks (NASDAQ:LLNW) saw their shares fall on the news.


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