Netflix's payments to Verizon for a direct connection to its network didn't result in immediate improvements for the companies' joint subscribers, but they're finally paying off with better video performance. Verizon FiOS actually topped all other major ISPs in Netflix performance in September with an average stream rate of 3.17Mbps, Netflix said today.

Although Verizon FiOS led all large ISPs in Netflix performance, Google Fiber is still No. 1 among all ISPs regardless of size with a 3.54Mbps average in September.

In August, Netflix streamed at an average of 2.41Mbps on Verizon FiOS, ranking tenth out of 16 major ISPs. In July, Netflix speed on Verizon FiOS was 1.61Mbps and in June it was 1.58Mbps, ranking 12th in both months. The Netflix/Verizon deal was announced in late April. When performance continued to get worse after the interconnection agreement, Verizon said it might take until the end of 2014 to get all the proper network connections in place to speed up video.

Luckily it hasn't taken quite that long. Netflix performance on Verizon DSL has improved as well, though not as much. After falling to a low of 0.91Mbps in June, it climbed to 1.68Mbps in September.

AT&T U-verse also improved after receiving interconnection payments from Netflix, from 1.44Mbps in July to 2.61Mbps in August and 2.77Mbps in September. AT&T DSL moved up from 1.11Mbps in July to 1.81Mbps in August and 1.91Mbps in September. Time Warner Cable, which also struck a paid interconnection deal with Netflix, had speeds improve from 2.16Mbps in July to 2.59Mbps in August and to 2.87 in September.

The interconnection deals give Netflix a direct connection to the edge of the Internet providers' networks, bypassing congested links, but without receiving priority treatment after entering the networks.