Substantiating the news first reported by GigaOm on Tuesday, Netflix and Time Warner Cable (TWC) have confirmed in separate statements that they have signed a paid interconnection agreement.

The deal signed by Netflix and TWC is similar to the recent agreements which Netflix has worked out with Comcast, Verizon Communications, and AT&T.

About its recently-struck paid interconnection deal with TWC, Netflix said in a statement: "We reached an agreement with Time Warner Cable in June and began the interconnection between our networks this month." A similar statement has been issued by TWC as well.

The implementation of the paid interconnection agreement between Netflix and TWC will result in a notable improvement in the quality of the Netflix streams which are delivered through TWC's access network.

The improved quality of Netflix streams resulting from the company's paid interconnection agreement with TWC will be noteworthy, given the fact that Netflix has revealed - in its ISP Speed Index for the month of July - that TWC delivered an average Netflix streaming speed of 2.16 Mbps. Due to the mentioned average speeds, TWC is currently placed at the sixth spot among the leading US Internet Service Providers ranked by Netflix.