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Comments on news posted 2014-01-23 12:37:59: Just a few years ago Netflix's botched DVD rental business split and significant price hikes resulted in numerous analysts proclaiming the company was dead. Netflix's earnings yesterday suggested anything but -- the company announcing they'd added 1. ..


newview
Ex .. Ex .. Exactly
Premium Member
join:2001-10-01
Parsonsburg, MD

6 recommendations

newview

Premium Member

Modus Operandi

quote:
"In principle, a domestic ISP now can legally impede the video streams that members request from Netflix, degrading the experience we jointly provide..the motivation could be to get Netflix to pay fees to stop this degradation," notes Hastings. "Were this draconian scenario to unfold with some ISP, we would vigorously protest and encourage our members to demand the open Internet they are paying their ISP to deliver."
Step one is already happening, and has been for some time. I spoke at length to a Netflix CSR rep just two days ago and he described the Comcast throttling issue policy as "common knowledge".

IPPlanMan
Holy Cable Modem Batman
join:2000-09-20
Washington, DC

IPPlanMan

Member

Re: Modus Operandi

Sure would be great if a Comcast person could comment on this "common knowledge" in this thread...

Hall
MVM
join:2000-04-28
Germantown, OH

Hall to newview

MVM

to newview
said by newview:

Step one is already happening...

I'm not disputing that it may be, but it's awfully hard to prove, is it not ?
rradina
join:2000-08-08
Chesterfield, MO

2 recommendations

rradina

Member

Re: Modus Operandi

Perhaps a Comcast Snowden will step forward?
dfxmatt
join:2007-08-21
Crystal Lake, IL

dfxmatt to Hall

Member

to Hall
It's just a question of how long it takes someone to make a tool for measuring this. It would be easy enough for netflix to help with said measurements, even.

Hall
MVM
join:2000-04-28
Germantown, OH

Hall

MVM

Re: Modus Operandi

I'm afraid it would all be somewhat circumstantial evidence though. You'd have to take a LOT of data to really see any trends...
iansltx
join:2007-02-19
Austin, TX

iansltx

Member

Re: Modus Operandi

With 44 million subscribers...larger than any single cable company or the internet base of a wireline phone company...I think Netflix is up to the job.
Millenium
join:2013-10-30

Millenium to newview

Member

to newview
I have Netflix and Time Warner. Both will lose if videos start getting thrown into buffering. I won't waste my time with customer support at either place.

Hope all goes well. But I have my doubts and suspect the clock is silently ticking. In fact, though I pay my bills annually in advance, Netflix and Time Warner will be taken out of that cycle and paid monthly when their current prepayment runs out in September.

tshirt
Premium Member
join:2004-07-11
Snohomish, WA

tshirt to newview

Premium Member

to newview
common belief, is not knowledge.
Comcast has been quite clear that they intend to follow the agreement they made as part of the NBC merger, which bars the discrimination a NETFLIX employee CLAIMS.
They also publish their peering and handoff requirements which Netflix has choosen not to meet, but other sources seem to have no problem with.
Reed Hastings frequently plays the "they're picking on me!" card, hoping to get a price advantage that others don't, NF users (and I am currently one) have to face the fact that another price increase is coming and hope Reed doesn't fumble it again.

newview
Ex .. Ex .. Exactly
Premium Member
join:2001-10-01
Parsonsburg, MD

3 recommendations

newview

Premium Member

Re: Modus Operandi

Comcast has already settled a lawsuit with the FCC for $800,000 for failure to follow certain conditions of the NBC merger agreement. They were less than diligent to "visibly offer and actively market" standalone broadband internet access. I suspect (though of course cannot prove) that Comcast is also dragging it's feet complying, or actively avoiding, other aspects of the agreement, especially those that benefit Comcast and cannot be proven unless you have inside knowledge.

As far as pricing polices goes, in my area, Comcast offers 10 ... yes that's 10 channels for $14.75. This laughable offer doesn't even meet their own criteria for the $15.00 discount. There is just no comparison between this offer and the $7.99 a month Netflix, even when they increase the price. Hell, even if they doubled the price it would be a better value than Comcast.

Netflix wants to introduce three pricing tiers for new members
»gigaom.com/2014/01/22/ne ··· -months/

tshirt
Premium Member
join:2004-07-11
Snohomish, WA

tshirt

Premium Member

Re: Modus Operandi

said by newview:

As far as pricing polices goes, in my area, Comcast offers 10 ... yes that's 10 channels for $14.75. This laughable offer doesn't even meet their own criteria for the $15.00 discount.

Even though I'm unsure what it has to do with net neutrality, can you point to the terms of this deal?
We have limited basic here at around $17 as per the franchise agreement but that's CATV not HSI, and wasn't because of the merger.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK
Netgear WNDR3700v2
Zoom 5341J

KrK to newview

Premium Member

to newview
The sad thing is, to "degrade" the connection, all they have to do is do nothing. Let it oversaturate and don't expand it. It's hard to prove someone is doing something malicious by not doing anything at all, and yet, that's *Exactly* what it would be.
Bengie25
join:2010-04-22
Wisconsin Rapids, WI

Bengie25

Member

Re: Modus Operandi

It's called being passive aggressive.

Sarick
It's Only Logical
Premium Member
join:2003-06-03
USA

Sarick to KrK

Premium Member

to KrK
It's still a form of extortion.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK

KrK

Premium Member

Re: Modus Operandi

Agreed.

cybah
join:2000-03-09
MA

cybah

Member

That's fine

That's fine NetFlix, but are you going to startup a nationwide broadband ISP that will compete with Comcast, Charter, Verizon, etc etc. Offer the same speeds as they do on a same (somewhat) reliable network? Yeah I didn't think so...

It's fine to get everyone up in arms about this but it'll do little good. What can end users do?

We cancel our service? Nope, because for most, there's little or no alternatives..

Letter Write? BigTelCo/BigCable doesn't care. Write Lawmakers? Yeah the same people who are being paid off by BigCable/BigTelco... it will just fall on deaf ears.

It's a nice idea netflix, but in reality, it's not going to do much.
iansltx
join:2007-02-19
Austin, TX

iansltx

Member

Re: That's fine

Netflix knows how many customers it has in some of its largest markets. I wouldn't be surprised if they started investing by proxy in alternate ISPs in those markets, by offering a discounted bundle or something similar. Or maybe they give away Internet transit for those ISPs (remember that they're buying plenty of transit for non-OpenConnect customers) to help them get those costs down to the level that larger ISPs enjoy (in Comcast's case they probably make more on paid peering than they spend on transit and the costs of setting up that peering combined).
Bengie25
join:2010-04-22
Wisconsin Rapids, WI

1 recommendation

Bengie25

Member

Re: That's fine

Customers already pay for bandwidth, why should Netflix help at all, except some smaller ISPs that get raked over coals for not being big enough to get decent transit rates.

dwarf knit
@sbcglobal.net

dwarf knit to iansltx

Anon

to iansltx
said by iansltx:

Netflix knows how many customers it has in some of its largest markets. I wouldn't be surprised if they started investing by proxy in alternate ISPs in those markets, by offering a discounted bundle or something similar. Or maybe they give away Internet transit for those ISPs (remember that they're buying plenty of transit for non-OpenConnect customers) to help them get those costs down to the level that larger ISPs enjoy (in Comcast's case they probably make more on paid peering than they spend on transit and the costs of setting up that peering combined).

Transit costs are dwarfed by the metro network costs to build and keep running.

There will never be real alternate ISPs at any scale. The problem is that you have a servicethat has large fixed costs. If I am the only provider, life is good - i get all the customers. Add a competitor and we split it in half (over time). Keep adding competitors, and the pie gets sliced more ways.

This is good for the customer for a while (e get cheaper service and they upgrade to compete), but bad if the pie is sliced too many ways as they are not making enough money to compete.

Also, the startup costs are painful for a non-wireless solution and wireless isn't competitive on capacity.
SunnyD
join:2009-03-20
Madison, AL

SunnyD

Member

Who's pockets are deeper?

That's all it's going to come down to. Unfortunately there's only ONE Netflix. There's far more than one "ISP". Last time I checked, the lobby for just AT&T or Verizon had far, FAR bigger wallets than you do, Reed.

ColoDude
@164.47.161.x

ColoDude

Anon

Re: Who's pockets are deeper?

For some, there _isn't_ more than one ISP.
Not unless you include streaming HD over wireless carriers at $30+/hr. Or even streaming SD at $5/hr.
elray
join:2000-12-16
Santa Monica, CA

1 recommendation

elray

Member

Re: Who's pockets are deeper?

So what?

Where is it written that anyone is entitled to stream Netflix at $8 a month, in lieu of local or satellite pay-tv services?

SimbaSeven
I Void Warranties
join:2003-03-24
Billings, MT
·StarLink

1 recommendation

SimbaSeven

Member

Re: Who's pockets are deeper?

said by elray:

So what?

Where is it written that anyone is entitled to stream Netflix at $8 a month, in lieu of local or satellite pay-tv services?

The same entitlement that let's you visit BBR without paying a "toll fee". I mean, why go here when there's several "tech*" channels on pay-tv?

*There hasn't been a real Tech channel for at least a decade.
elray
join:2000-12-16
Santa Monica, CA

1 recommendation

elray

Member

Re: Who's pockets are deeper?

With apologies to Justin, BBR doesn't create an undue traffic burden.

Netflix does.
65194623 (banned)
join:2014-01-14

2 recommendations

65194623 (banned)

Member

Re: Who's pockets are deeper?

said by elray:

With apologies to Justin, BBR doesn't create an undue traffic burden.

Netflix does.

Using your Internet connection which you paid for is an undue burden? Seriously? Is that how screwed up North America has become? Using services you paid for and you're evil scum? Seriously twisted and screwed up.
iansltx
join:2007-02-19
Austin, TX

iansltx to elray

Member

to elray
BBR also in and of itself won't convince someone that they need more than a 768k connection. Netflix on the other hand creates demand for 10+ Mbit connections per device connected, much more than any other Internet activity (just look at the traffic graphs). That includes BitTorrent et al.

If getting $30 more per month per subscriber because they aren't on the absolute most basic 'net tier is an undue burden, the cablecos need to have their heads checked.
65194623 (banned)
join:2014-01-14

1 recommendation

65194623 (banned)

Member

Re: Who's pockets are deeper?

said by iansltx:

BBR also in and of itself won't convince someone that they need more than a 768k connection.

The vast majority of net connected surfers have much faster connections whether using Netflix or not.
BiggA
Premium Member
join:2005-11-23
Central CT

1 recommendation

BiggA to elray

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to elray
HUH? If it's an undue burden for an ISP, then they apparently can't do their job, and should GTFO of the ISP business.
65194623 (banned)
join:2014-01-14

1 recommendation

65194623 (banned)

Member

Re: Who's pockets are deeper?

said by BiggA:

HUH? If it's an undue burden for an ISP, then they apparently can't do their job, and should GTFO of the ISP business.

In the telecomms business the mindset all too often is charge the customer but then not deliver on the service and even worse too many consumers actually buy into this nonsense.
BiggA
Premium Member
join:2005-11-23
Central CT

BiggA

Premium Member

Re: Who's pockets are deeper?

True. And buy the government off so that the government can't force them to actually deliver the service they are selling. It's not like most people have any choice.

KrK
Heavy Artillery For The Little Guy
Premium Member
join:2000-01-17
Tulsa, OK

1 edit

1 recommendation

KrK to elray

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to elray
I disagree that Netflix creates an undue burden.

••••
betam4x
join:2002-10-12
Nashville, TN

1 recommendation

betam4x to elray

Member

to elray
I suspect you must be a cable company shill to post that. Where is it written that comcast or any other cable company is entitled to my money at all?
elray
join:2000-12-16
Santa Monica, CA

elray

Member

Re: Who's pockets are deeper?

I have no love lost for the cable industry, nor, any vested interest in them. I only call things as I see them and give credit where it is due, and in a post-Adelphia, post-Rigas world, our regional cable companies have done a fantastic job at providing broadband and telephony.

As for Comcast, no, they are not entitled to your money; this still somewhat a free country - unlike "health insurance" and many a muni, you are not required by law to pay them anything.
65194623 (banned)
join:2014-01-14

1 recommendation

65194623 (banned)

Member

Re: Who's pockets are deeper?

said by elray:

I only call things as I see them and give credit where it is due, and in a post-Adelphia, post-Rigas world, our regional cable companies have done a fantastic job at providing broadband and telephony.

As for Comcast, no, they are not entitled to your money; this still somewhat a free country - unlike "health insurance" and many a muni, you are not required by law to pay them anything.

Then you need some serious help.

Your posts claim otherwise.

SimbaSeven
I Void Warranties
join:2003-03-24
Billings, MT

1 recommendation

SimbaSeven to SunnyD

Member

to SunnyD
There isn't more than one "ISP" for most people.. and if you suggest Satellite, we'll beat you with a stick like a piƱata.

•••••••••
elray
join:2000-12-16
Santa Monica, CA

elray to SunnyD

Member

to SunnyD
There is only one Netflix, because the content industry wised up after they realized they had sold their 3rd-rate cutting-room floor scraps too cheap. No one else is going to have a chance to offer even their pathetic library at that price point.

The ISPs, including those in the pay-tv business, aren't going to intentionally congest Netflix - that would cost too much goodwill. But they will, at the same time, not be blackmailed by Netflix into paying their overhead.

kpfx
join:2005-10-28
San Antonio, TX

1 recommendation

kpfx

Member

Sponsored Data does already exist

I hate the idea of "sponsored data" but the more I think about it, I see that it does already exist and has for many years.

Anybody that subscribes to video or phone services from a telco or cable company are already paying for a "sponsored connection". Its delivered over the same infrastructure and in many cases over the same TCP/IP platform that our modems are running on. Yet a cable's phone service or telco's video platform doesn't count against the end user's Internet caps or bandwidth (they're provisioned above whatever Internet level is subscribed to).

I'm just throwing this thought out there for academic discussion. Its a tricky situation because that's now being expanded to the "Internet". I'm still wrestling with the implications in my head on how this could affect both sides, but bottom line there's probably going to be some radical chances in the next 5-10 years.

•••••
Crookshanks
join:2008-02-04
Binghamton, NY

Crookshanks

Member

Enough with the VZW dead horse already.....

.... Verizon Wireless doesn't prevent you from running apps on their network.

They lock down some of their subsidized phones. They don't block apps/ports/protocols accessed via their data cards and you've always got the option of bringing your own device rather than buying a VZW bloatware filled smartphone.

I may not agree with their behavior, but it's not THAT hard to bypass it. All you have to do is buy your own phone and not ask them to subsidize it.

••••••••
axiomatic
join:2006-08-23
Tomball, TX

1 recommendation

axiomatic

Member

Bizarre

Whats with some of the bizarre responses on here where people want Netflix to fail? They provide a great service at a modest price. Whats not to like? You like paying more for your entertainment? Did Netflix run over your dog? Are you Verizon shareholders? I don't understand the hate?
65194623 (banned)
join:2014-01-14

1 recommendation

65194623 (banned)

Member

Re: Bizarre

said by axiomatic:

Whats with some of the bizarre responses on here where people want Netflix to fail? They provide a great service at a modest price. Whats not to like? You like paying more for your entertainment? Did Netflix run over your dog? Are you Verizon shareholders? I don't understand the hate?

Its some of the usual posters on here that are either corporate shills and/or have serious mental issues.
old_wiz_60
join:2005-06-03
Bedford, MA

old_wiz_60

Member

who has bigger pockets?

Netflix or the cable/telcos? Whichever pays the most to Congress/courts will win. This will be decided based on who slips the most money into the right pockets.

My money is on the cable/telcos - they have more money than Netflix, so they will be able to demand more money from Netflix to allow Netflix to get through.

Bribery works wonders in Washington, whether it's to the White House, Congress, federal agencies, or the SCOTUS - all are open to the money.
65194623 (banned)
join:2014-01-14

2 edits

1 recommendation

65194623 (banned)

Member

Re: who has bigger pockets?

said by old_wiz_60:

My money is on the cable/telcos - they have more money than Netflix, so they will be able to demand more money from Netflix to allow Netflix to get through.

North American corruption at its finest.... North America is so screwed its not funny.

This is what is known as extortion. The fact that this is illegal in every other sense but is somehow rationalized as being Ok for the Internet is nonsense.
betam4x
join:2002-10-12
Nashville, TN

betam4x

Member

Throttling

If throttling and/or blocking netflix and youtube actively becomes an issue, I'm sure that netflix will partner with Google to help expand Google's fiber footprint.

couldbytebak
@clearwire-wmx.net

couldbytebak

Anon

Re: Throttling

Yea but that could come back to byte them too. Suppose Vimeo decides they want to sponsor or allow free bandwidth to their CDN services, or amazon prime to their CDN and paying the bill. Google and netflix won't put up with that for long as it would cost them subscribers.
intok (banned)
join:2012-03-15

intok (banned)

Member

Re: Throttling

At the very least the 4 of them need to get together to fight back against the ISPs. The more large-medium sized internet content companies join up the better chance they have of not getting screwed by the ISPs and their bought and paid for bureaucrats.