Netflix reaches traffic service agreement with Comcast

[Teh One Who Knocks]

By Rex Crum, MarketWatch


http://i.imgur.com/F7Zu9pK.jpg

SAN FRANCISCO (MarketWatch) — Netflix Inc. and Comcast Corp. said Sunday they have reached an agreement that will improve the viewing experiences of consumers who use the popular video-streaming service via the largest cable TV provider in the U.S.

Netflix and Comcast said in a joint statement that the companies “have established a more direct connection between Netflix and Comcast, similar to other networks” that does away with potential bottlenecks on the network traffic routes that can result in slow delivery of videos, or videos that stop in the middle of viewing.

Financial terms of the multiyear deal weren't disclosed, but the companies said Netflix will receive no preferential network treatment under what was called “a mutually beneficial interconnection agreement.”

With more than 33 million video-streaming subscribers in the U.S., and due to the popularity of movies, TV shown, and original programming such as the political drama “House Of Cards” starring Kevin Spacey, Netflix has been said to be responsible for as much as one-third of the U.S. online video streaming at any given time. Such large amounts of data transmission have caused issues between Netflix and several broadband providers, including Verizon , over content delivery and the speed at which customers receive Netflix’s programming.

According to Netflix’s own ISP Speed Index , Comcast ranked 14th out of 17 major ISPs for Netflix viewing speed, with an average video-streaming speed of 1.51 megabits per second. Google Fiber had the fastest average streaming speed, with 3.78 megabits per second.

Because Netflix and Comcast reached an interconnection agreement, the deal doesn’t fall under the “net neutrality” rules that prevent Internet service providers such as Comcast from blocking or slowing traffic to websites. The Federal Communications Commission said last week that it expects to craft new rules by early summer on keeping broadband providers from charging fees to Netflix and other companies.

[RBP]

I don't understand what they agree to do.

[Teh One Who Knocks]

I don't understand what they agree to do.

Netflix is paying Comcast to not throttle the bandwidth being used by Comcast customers streaming Netflix.

[RBP]

By Rex Crum, MarketWatch


http://i.imgur.com/F7Zu9pK.jpg

SAN FRANCISCO (MarketWatch) — Netflix Inc. and Comcast Corp. said Sunday they have reached an agreement that will improve the viewing experiences of consumers who use the popular video-streaming service via the largest cable TV provider in the U.S.

Netflix and Comcast said in a joint statement that the companies “have established a more direct connection between Netflix and Comcast, similar to other networks” that does away with potential bottlenecks on the network traffic routes that can result in slow delivery of videos, or videos that stop in the middle of viewing.

Financial terms of the multiyear deal weren't disclosed, but the companies said Netflix will receive no preferential network treatment under what was called “a mutually beneficial interconnection agreement.”

With more than 33 million video-streaming subscribers in the U.S., and due to the popularity of movies, TV shown, and original programming such as the political drama “House Of Cards” starring Kevin Spacey, Netflix has been said to be responsible for as much as one-third of the U.S. online video streaming at any given time. Such large amounts of data transmission have caused issues between Netflix and several broadband providers, including Verizon , over content delivery and the speed at which customers receive Netflix’s programming.

According to Netflix’s own ISP Speed Index , Comcast ranked 14th out of 17 major ISPs for Netflix viewing speed, with an average video-streaming speed of 1.51 megabits per second. Google Fiber had the fastest average streaming speed, with 3.78 megabits per second.

Because Netflix and Comcast reached an interconnection agreement, the deal doesn’t fall under the “net neutrality” rules that prevent Internet service providers such as Comcast from blocking or slowing traffic to websites. The Federal Communications Commission said last week that it expects to craft new rules by early summer on keeping broadband providers from charging fees to Netflix and other companies.


Netflix is paying Comcast to not throttle the bandwidth being used by Comcast customers streaming Netflix.

That would have been my gut reaction as well, but the article is carefully worded to specifically say that's not what they are doing. The last paragraph is confusing... didn't net neutrality get killed?

[Teh One Who Knocks]

Here's another article that does a bit better job of explaining it:


Comcast confirms deal with Netflix to allow faster speeds
CNN News Wire


NEW YORK — Streaming movies on Netflix should get faster.

Comcast confirmed Sunday that it will allow Netflix to connect directly to its broadband network.

Netflix will pay Comcast for the access, the Wall Street Journal reported, citing sources familiar with the deal. It did not cite specific terms of the deal. Comcast and Netflix would not confirm that arrangement.

In a statement, Comcast said the more-direct pipeline is “already delivering an even better user experience to consumers.” That means the direct pipe has already been established, a source confirmed to CNNMoney.

Netflix and internet service providers have been at odds over the huge amount of bandwith Netflix streaming eats up. At peak times, Netflix traffic can be one-third of all U.S. broadband network traffic.

Internet service providers have wanted Netflix to pay them for the bandwith. The dispute apparently slowed Netflix streaming speeds for customers of Verizon FiOS by 14% earlier this year. Speeds for Comcast customers have also been sluggish.

Verizon is currently in talks with Netflix as well, the Journal reported.

Comcast is the No. 1 cable company, with about 23 million subscribers. It has entered into an agreement to buy Time Warner Cable, which has 11 million subscribers.

A person close to the deal told CNNMoney that Netflix chief Reed Hastings and Comcast head Brian Roberts struck the agreement in early January at the Consumer Electronics Show, and have been working on implementing it since then.

[RBP]

Ok, thanks, Lance... this Bloomberg article provides more detail also.

http://www.bloomberg.com/news/2014-02-23/netflix-said-to-agree-to-pay-comcast-for-faster-broadband-access.html

[Muddy]

I can't stand friggin' Comcast..

[PorkChopSandwiches]

Let the shakedowns begin

[Muddy]

Yo thank you for be calling Comcast.. How can I hep you, Mother fuckah?

[Teh One Who Knocks]

Roger Yu, USA TODAY


AT&T and Verizon Communications confirmed Monday that they are in talks with Netflix to increase the download speeds of the video streamer's movies and TV shows for their broadband Internet services, seeking to join a competitor in addressing a common customer complaint.

Their acknowledgement comes two days after Netflix said it has agreed to pay Comcast to have the largest U.S. broadband Internet provider connect directly to Netflix's servers in transmitting movies and TV shows, an arrangement that would remove data traffic bottlenecks but worries consumer advocacy groups that prices may rise.

Like many content providers in heavy demand, Netflix uses third-party content distributors to help distribute its movies to Internet service providers, which in turn stream them to their customers.

Netflix also operates its own set of servers in data centers. And in their deal, Comcast is now bypassing these third-party distributors to connect directly to Netflix's network. AT&T and Verizon are pursuing similar arrangements.

"We're in discussions with Netflix to establish a more direct connection between our networks, similar to agreements we have with others, so that AT&T broadband customers who use Netflix can enjoy an even better video experience," AT&T said in a statement.

Verizon Communications CEO Lowell McAdam told CNBC on Monday that his company has been talking with Netflix for about a year and expects a deal. "I'm not here to pre-announce a deal," he said. "But it's in both parties' interest."

"Verizon is always looking for new ways to benefit our customers," Verizon said in a statement following the interview.

Netflix is the clear bandwidth hog and occupies about 32% of the downstream traffic in North America, according to network technology company Sandvine.

Its customers' complaints about slowing download speeds have grown more loudly in recent months, and the parties have sought to deflect blame. Netflix has highlighted the problem by releasing its transmission speed index of leading Internet service providers (ISP).

In January, Verizon's DSL service ranked last out of 17 ISPs measured in Netflix movie download speed. AT&T's DSL service ranked 15th on the list. Verizon FiOS, which is available only to about 18 million homes in the U.S., ranked seventh.

To relieve traffic, Netflix has been working with ISPs -- in a program called Open Connect -- to install its own servers within the ISPs' networks. In Open Connect, ISPs can also opt to connect directly to Netflix's servers rather than receiving content from third-party data distributors that have contracted with Netflix.

Most large ISPs, including Comcast, Verizon and AT&T, have refused to participate in the Open Connect program. While it's a free arrangement, Cablevision and Cox are among the few U.S. ISPs that have agreed to experiment with Open Connect.

Netflix is not calling its agreement with Comcast an Open Connect deal. But similar technology methods will be used, as Comcast connect directly to Netflix's own servers.

Cable industry proponents say the Netflix-Comcast deal isn't dissimilar to other arrangements that have prominent content providers paying to speed up transmission between their networks. The "pipes" between the ISP and third-party distributors -- which are sending and receiving content belonging to multiple clients -- are often clogged, and the party that is jamming the road should pay to relieve traffic, they say.

But consumer advocacy groups say the deal could usher in a new era in which content providers have to "pay to play" and only those who can afford it will take priority.

"Comcast and friends like to cry foul at the sheer amount of traffic video-streaming companies use. But the actual investment these extremely profitable ISPs would need to make to ensure their customers get the quality of service they paid for is extremely small," wrote Craig Aaron of CEO of Free Press on its website. "We're talking so small it wouldn't make the slightest dent in the continued growth in broadband profits these companies enjoy year after year."

[Hal-9000]

I can't stand friggin' Comcast..

You should try living up here...my 'high speed internet' package (broadband) is about 10-15 MBs downloading and .5 MBs uploading

and I pay 45 dollars/month for that privelage :meh:


I can buy faster packages like 'Nitro', for 110 month for just internet ......

[PorkChopSandwiches]

So expect a Netflix price increase by the year end then?

[Teh One Who Knocks]

You should try living up here...my 'high speed internet' package (broadband) is about 10-15 MBs downloading and .5 MBs uploading

and I pay 45 dollars/month for that privelage :meh:


I can buy faster packages like 'Nitro', for 110 month for just internet ......

http://i.imgur.com/9nllEMD.png

[Teh One Who Knocks]

So expect a Netflix price increase by the year end then?

That would be my guess

[Hal-9000]

So Lance they just show one speed on your chart...I assume that's best case for downloading?

[Hal-9000]

and top ones include TV channels while the bottom are just net speeds?

[Teh One Who Knocks]

So Lance they just show one speed on your chart...I assume that's best case for downloading?

Yeah, those are best case scenarios, but since it's coming thru coax, they are usually pretty accurate. You've seen me post my speeds, I usually exceed what they say the maximum d/l speed is.

[Teh One Who Knocks]

and top ones include TV channels while the bottom are just net speeds?

Yup, you get better deals when you bundle packages.

[Hal-9000]

Yeah, those are best case scenarios, but since it's coming thru coax, they are usually pretty accurate. You've seen me post my speeds, I usually exceed what they say the maximum d/l speed is.

I get about 10 MBs when I test.....I read an article about how we Canadians get some the shittiest speeds and the highest prices in North America. One IT consultant called it borderline illegal considering what Americans get and pay for, supposedly using the same tech

[Hal-9000]

Yup, you get better deals when you bundle packages.

Yeah we have bundling too..

real crappy net speed
10 crappy channels you'll never watch (without a sports channel)

= ONLY 89.99 per month!~!

[Teh One Who Knocks]

http://i.imgur.com/KdlVhyh.png

[Hal-9000]

SOUTH KOREA?????


shutup :lol: