Broomfield-based Level 3 Communications surged in Nasdaq trading after winning a contract to provide video- streaming and storage services to Netflix, the mail-order and online movie-rental company.
Netflix will begin moving its 20,000 movie titles to Level 3’s storage this month, according to a statement Thursday. Level 3 will provide streaming services starting Jan. 1.
Level 3 said it will double its storage capacity to help accommodate the new contract. The company’s shares rose 9 cents, or 8.7 percent, to $1.12 on the Nasdaq on Thursday.
Netflix said this week it was “satisfied” with the video- streaming service now provided by Akamai Technologies Inc. Dan Rayburn, a Frost & Sullivan analyst, said he expected Netflix to end its relationship with Akamai.
The contract between Level 3 and Netflix will last three years, beginning last month, Mark Taylor, Level 3 vice president of content and media, said in an e-mailed statement. Bloomberg News
