Netflix Signs Multi-Year Deal with Level 3 for Streaming Services

Level 3 Selected Based on Scalability, User Experience and Geographic Reach

BROOMFIELD, Colo.--()--Level 3 Communications, Inc. (NASDAQ: LVLT) today announced that it has been selected to serve as a primary content delivery network (CDN) provider for Netflix, Inc. to support the company’s streaming functionality and to support storage for the entire Netflix library of content.

As a result of the deal, Level 3 has accelerated plans to further invest in its CDN capacity. Level 3 will double its storage capacity and add 2.9 Terabits per second (Tbps) of globally available CDN capacity, which is in addition to the 1.65 Tbps that was deployed in the third quarter of 2010.

The CDN augment will provide the headroom needed to meet demand requirements from Netflix now and to accommodate future growth. Netflix says its subscriber base will exceed 19 million in North America by the end of this year and that they expect more growth and international expansion in future years.

“Level 3’s track record for delivery and network scalability were critical factors in our decision to work with Level 3 on a long-term basis,” said Andrew Rendich, chief service and DVD operations officer with Netflix. “We’ve been impressed with their speed and consistency, and we feel confident in their ability to quickly scale to meet demand as more and more Netflix members watch instantly.”

In addition to supporting Netflix for streaming movies and TV shows, Level 3 will store the entire Netflix streaming library of more than 20,000 titles. Over the course of November and December, the two companies will move the library to storage with Level 3 in preparation for serving traffic beginning Jan. 1, 2011.

“One of the primary advantages of owning our network is the agility it affords – we’re able to scale, augment and, ultimately, better control the performance of our CDN,” said Mark Taylor, vice president of Content and Media. “We’re committed to ensuring that our performance consistently exceeds our customers’ expectations, and we look forward to working with Netflix to serve their millions of streaming customers for years to come.”

Level 3's network is designed to help customers control quality from Creation to Consumption. The company’s CDN combines the advantages of an industry-leading Internet backbone with a sophisticated, proven content delivery platform. This combination connects customers to high-performance, highly scalable services and simplifies delivery. And with one of the world’s largest IP networks, Level 3 is focused on providing an optimal path to connect content to end users.

For more information on Level 3’s CDN services, please visit www.Level3Delivers.com.

About Level 3 Communications

Level 3 Communications, Inc. (NASDAQ: LVLT) is a leading international provider of fiber-based communications services. Enterprise, content, wholesale and government customers rely on Level 3 to deliver services with an industry-leading combination of scalability and value over an end-to-end fiber network. Level 3 offers a portfolio of metro and long-haul services, including transport, data, Internet, content delivery and voice. For more information, visit www.Level3.com.

© Level 3 Communications, LLC. All Rights Reserved. Level 3, Vyvx, “From Creation to Consumption,” Level 3 Communications and the Level 3 Communications Logo are either registered service marks or service marks of Level 3 Communications, LLC and/or one of its Affiliates in the United States and/or other countries. Level 3 services are provided by wholly owned subsidiaries of Level 3 Communications, Inc. Any other service names, product names, company names or logos included herein are the trademarks or service marks of their respective owners.

Forward-Looking Statement

Some of the statements made in this press release are forward looking in nature. These statements are based on management’s current expectations or beliefs. These forward looking statements are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside Level 3’s control, which could cause actual events to differ materially from those expressed or implied by the statements. The most important factors that could prevent Level 3 from achieving its stated goals include, but are not limited to, the current uncertainty in the global financial markets and the global economy; disruptions in the financial markets that could affect Level 3’s ability to obtain additional financing; as well as the company’s ability to: increase and maintain the volume of traffic on the network; successfully integrate acquisitions; develop effective business support systems; defend intellectual property and proprietary rights; manage system and network failures or disruptions; develop new services that meet customer demands and generate acceptable margins; adapt to rapid technological changes that lead to further competition; attract and retain qualified management and other personnel; and meet all of the terms and conditions of debt obligations. Additional information concerning these and other important factors can be found within Level 3’s filings with the Securities and Exchange Commission. Statements in this press release should be evaluated in light of these important factors. Level 3 is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise.

Contacts

Level 3 Communications
Media:
Alexis Hammack
720-888-2441
E-mail
or
Investors:
Mark Stoutenberg
720-888-2518

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Contacts

Level 3 Communications
Media:
Alexis Hammack
720-888-2441
E-mail
or
Investors:
Mark Stoutenberg
720-888-2518