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Netflix replies to Verizon cease and desist letter

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Re: Netflix replies to Verizon cease and desist letter

#51
post #16
post #3

Anyone have a screenshot of what the error message actually says?

"The Verizon Network is Crowded Right Now." http://arstechnica.com/information-technology/2014/06/netfli...

That seems like a very fair and accurate claim. They should've done it to Comcast, too, before they paid up, and when they did this to them:

http://knowmore.washingtonpost.com/2014/04/25/this-hilarious...

Re: Netflix replies to Verizon cease and desist letter

#53
post #28

This is a genius move. It's exactly what needs to happen to get consumers to realize that it's their ISP fucking them over, not Netflix. The average joe isn't outraged enough about net neutrality. If only they'd start doing this to other known bad actors coughcomcastcough , that might just be what the doctor ordered. I wonder why they ponied up the money to the protection rackets first, and only then started pointing…

From a strategic perspective, I think paying off one of the ISPs in this case strengthens their case by showing that the problem is a shakedown for money. If they didn't pay up and the issue was never fixed then the ISPs could attempt to play it off as some larger-than-money issue. They've proven the problem is greed.

Even better, it attacks Verizon using their own words against them.

Verizon: Netflix performance sucks because their traffic is congesting our network!

Netflix: Our performance sucks because their network is congested!

Verizon: OMG WTF you can't say that!

Re: Netflix replies to Verizon cease and desist letter

#54
post #46

Awesome response to the C&D, via spokesman Jonathan Friedland: "This is about consumers not getting what they paid for from their broadband provider. We are trying to provide more transparency, just like we do with the ISP Speed Index, and Verizon is trying to shut down that discussion."

Playing Devil's advocate here for a second:

If Netflix is 35% of global internet traffic at peak capacity (as per the Akamai CEO's comments at a number of events), is it really fair to treat them like every other company? That is to say, if Netflix is really the sole driver of Network upgrades, why does Verizon have to subsidize their costs of business?

I'm not taking the stance that this is correct, only querying as to why the dynamics here are such that we automatically assume Netflix is in the right. Guilt tripping Verizon into adding more routers is a major net positive to Netflix's business.

Yes, ISP customers are paying for access but the business reality is that the ARPU per subscriber is decreasing every year at a rate lower than additional subscriber acquisition can sate. As Wall Street demands growth, it has to come from somewhere, and since Carriers are not able to sell consumers additional services (no matter how hard they try), they need to find another set of wallets (content providers). They're not utilities and have a profit motive, right?

Again, I'm not saying this is correct, simply trying to add another viewpoint to the conversation.

Re: Netflix replies to Verizon cease and desist letter

#55
post #21

It's frustrating that Verizon and friends can make grandiose statements in their advertising about "unlimited bandwidth", "faster wifi" ,"stream 5 things at a time", etc, etc. Or lie to customers, My mother just called Comcast to downgrade her service and the CS Rep said "WiFi won't work with our Economy Plus internet plan" Yet when another entity does something as simple as showing an error message that casts them i…

What do they mean WiFi won't work? How is that anything other than a blatant lie? Reminds me of the late 90's when my ISP told me I couldn't get cable Internet because I didn't have a 486. I lied and told them I did to have the modem sent to me to hook up myself. It's a computer network, once it's in my house I can expose it as I like.

Similarly in college, when setting up TWC account after some friends and I moved into a house. I clearly remember them saying that our wifi would only work with 1 device if we didnt get the "Fastlane" or whatever package they where trying to up-sell at the time.

I just played it dumb and said it was just me. We had about 10+ wireless devices connected.

Re: Netflix replies to Verizon cease and desist letter

#56
In the cease and desist, the Verizon's lawyers allege that Netflix can't possibly know if the network slow-down is coming from Verizon's network or other parts of the internet. I actually chuckled when I read this -- because after reading Netflix Tech blog (here: http://techblog.netflix.com/ ) and seeing Netflix's open source contributions (here: https://github.com/Netflix) I have a feeling Netflix probably has a LOT of data to back up these assertions.

Re: Netflix replies to Verizon cease and desist letter

#57
post #46

Awesome response to the C&D, via spokesman Jonathan Friedland: "This is about consumers not getting what they paid for from their broadband provider. We are trying to provide more transparency, just like we do with the ISP Speed Index, and Verizon is trying to shut down that discussion."

Am I the only one who thinks that this could hugely backfire from a PR perspective?

The message is "The Verizon Network is Crowded Right Now." not "Verizon is Deliberately Slowing This Right Now." (or some less loaded version of that)

It's bad PR for the ISPs, but combined with the fact that most people can hardly spell ISP, and that Comcast and their FCC homies keep describing the new toll booth as a fast lane, if I were a nontechnical consumer my first response would be, "What the hell are they waiting for? Put in the fast lane! I wanna watch my damn movies!"

Re: Netflix replies to Verizon cease and desist letter

#60
post #46

Awesome response to the C&D, via spokesman Jonathan Friedland: "This is about consumers not getting what they paid for from their broadband provider. We are trying to provide more transparency, just like we do with the ISP Speed Index, and Verizon is trying to shut down that discussion."

Playing Devil's advocate here for a second: If Netflix is 35% of global internet traffic at peak capacity (as per the Akamai CEO's comments at a number of events), is it really fair to treat them like every other company? That is to say, if Netflix is really the sole driver of Network upgrades, why does Verizon have to subsidize their costs of business? I'm not taking the stance that this is correct, only querying as…

Netflix isn't sending their data to customers unsolicited.

Customers are requesting that data, through a pipe which they have already paid for.

It is unfair for Verizon, or any other ISP, to ask to be paid twice for the same bits. What bits I am asking for, as a customer, shouldn't make a damn bit of difference.

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