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Netflix Agrees to Pay Comcast to End Web Traffic Jam

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Re: Netflix Agrees to Pay Comcast to End Web Traffic Jam

#51

Is there a non pay-walled version available? This may mark the end of net neutrality.

http://bit.ly/NoS35l Just google the headline, they allow access to requests with google referrers.

Not working. Does this only work on non-mobile devices?

Re: Netflix Agrees to Pay Comcast to End Web Traffic Jam

#52

Beyond looking at the implications for Net Neutrality (since we don't really know the implications of this deal going forward in relation to this); for people who are wondering why this has happened, this looks like this is part of Netflix's Open Connect Project[1] which is a single-purpose CDN network - and is essentially a paid-peering deal. As part of the Open Connect Project, Netflix has deployed servers which ar…

Netflix does not use AWS to move video bits, but yes it will save them money on CDN costs.

Re: Netflix Agrees to Pay Comcast to End Web Traffic Jam

#53
post #34

And so the precedent is set. This is the direction I see things going: For $70 a month from Comcast you can get Amazon, Google, and Facebook. For only $10 more a month you can add Netflix and Spotify. Want Pandora? Sorry, you'll have to switch to AT&T for that. The broadband providers are used to this type of packaged service given their history as cable television providers. It's how they make their money beyond pro…

> I don't see any other way around this. Vote with your feet.

It's not really a free market to end consumers. To change cable companies, I have to go for some WiMax/Wifi type ISP (lower quality in most cases), DSL (also lower quality in most cases), or move my residence to somewhere in the service area for another cable company.

Re: Netflix Agrees to Pay Comcast to End Web Traffic Jam

#54
post #44

And so the precedent is set. This is the direction I see things going: For $70 a month from Comcast you can get Amazon, Google, and Facebook. For only $10 more a month you can add Netflix and Spotify. Want Pandora? Sorry, you'll have to switch to AT&T for that. The broadband providers are used to this type of packaged service given their history as cable television providers. It's how they make their money beyond pro…

That is not going to happen. The onus is not on the consumer, it's on the service provider. The service provider may transfer the costs onto the consumer but Comcast won't directly charge the consumers a premium. That would be a bad move and Comcast would lose out its customers to competitors.

Why not? Isn't this exactly how they sell premium channels, like HBO?

Re: Netflix Agrees to Pay Comcast to End Web Traffic Jam

#55

Wow, Netflix has decided to negotiate with the terrorists? I'm pretty disappointed. Edit: Having read more of the non-paywalled version, I have to say I think they're shooting themselves in the foot, even if Comcast was offering a better price than Cogent. It sets a terrible precedent, and gives Comcast the leverage to bump the price extortionately at the end of the deal.

As much as I hate the ISPs, calling them terrorists is a bit too much.

It is too much to compare them to what terrorists do, but let's face it - this could lead to more damage to the internet than terrorists could ever do.

Re: Netflix Agrees to Pay Comcast to End Web Traffic Jam

#56

Are the insane? Why would they agree to this weeks after the net neutrality case, and not wait at least until they see what Congress and FCC want to do about it? The only other explanation is that they may actually like this, because they know it would slow down a lot of their smaller competitors coming after them. It's even stranger when you think that customers must've blamed Comcast for their poor Netflix experien…

Because their business cannot wait...

It's like a hostage situation; you say "yeah I don't negotiate with terrorists" but when you see your wife/kid/so threatened and the money is just there in the bank it's hard to hold on to that posture...

Re: Netflix Agrees to Pay Comcast to End Web Traffic Jam

#57
post #50
post #44

Earlier quoted context omitted.

That is not going to happen. The onus is not on the consumer, it's on the service provider. The service provider may transfer the costs onto the consumer but Comcast won't directly charge the consumers a premium. That would be a bad move and Comcast would lose out its customers to competitors.

Not when their competitors will do the same. Heck, what competitors? Many areas only have Comcast service!

>> "Many areas only have Comcast service!"

Do a lot of people in the US only have access to one or two ISP's?? If so why? I'm in a not particularly urban part of Ireland and I can choose between at least 5 ISP's, decent speeds, and a good variety of prices.

Re: Netflix Agrees to Pay Comcast to End Web Traffic Jam

#58
post #44

And so the precedent is set. This is the direction I see things going: For $70 a month from Comcast you can get Amazon, Google, and Facebook. For only $10 more a month you can add Netflix and Spotify. Want Pandora? Sorry, you'll have to switch to AT&T for that. The broadband providers are used to this type of packaged service given their history as cable television providers. It's how they make their money beyond pro…

That is not going to happen. The onus is not on the consumer, it's on the service provider. The service provider may transfer the costs onto the consumer but Comcast won't directly charge the consumers a premium. That would be a bad move and Comcast would lose out its customers to competitors.

The problem is that in many Comcast markets there are no viable competitors.

With Comcast I get ~3MB/s internet. DSL and Wireless broadband aren't even close to those speeds (in my area). So if I'm forced to pay a premium or switch, I have to "give up" significant performance.

PLEASE GOD GIVE ME GOOGLE FIBER.

Re: Netflix Agrees to Pay Comcast to End Web Traffic Jam

#59
post #16

This is actually good for Netflix and terrible for any competition. While Netflix probably has to hand over a bit of money, they are in a much better position to do so than any of their competitors as they're the biggest. In effect this creates a massive entry barrier into the video streaming market. You will now likely need to set up a massive infrastructure and pay massive bribes to various internet providers to be…

Not so much established and highly capitalized competition (like Amazon), but disastrous for startups and new entrants. It adds a major barrier to entry in the form of a b2b paywall before you can reach consumers.

Isn't that's already the case by default? My read of this is that they're paying Comcast directly because it's cheaper than the conventional route of paying for commodity transit via a regular ISP (though more expensive than their preferred solution, a no-fee peering arrangement). As a new entrant I don't have much choice but to pay for commodity transit: Comcast is not going to peer directly with me anyway (or let me park my CDN boxes on their network, for that matter), so I need to pay the transit ISP. If I do so, am I at any disadvantage? Afaict, if I'm a new entrant who sets up colocation at he.net, say, and pay he.net for transit, I won't have any trouble getting my data to Comcast users.

Re: Netflix Agrees to Pay Comcast to End Web Traffic Jam

#60

Earlier quoted context omitted.

Actually they are natural monopolies.

The cabling is a natural monopoly. Who is allowed to service you over it is not. Thats why many countries have some degree of unbundling of service and provision of wires, eg I can get many providers of ADSL here over the same phone lines that are owned by a monopoly provider. Alas not for fibre though yet (UK).

Why would Verizon want to spend 10 million wiring up your neighborhood and potentially not get you as a customer in an area where Comcast has already spent 10 million to do so? Also why should Comcast be forced to let competitors use their infrastructure they've spent massive amounts of money on building and maintaining?
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