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rebus9

join:2002-03-26
Tampa Bay
Reviews:
·Verizon FiOS
·Bright House
reply to guppy_fish

Re: Netflix OpenConnect

said by guppy_fish:

This is Netflix's attempt to shift the delivery costs

Everyone benefits, both Netflix and the ISP.

If you ran the ISP, which would you prefer? Many customers pulling streams from an on-net distribution point, or those same customers pulling those SAME streams across your transit links? (hint: the correct answer is from the on-net mirror)

It's the same methodology already used by Akamai, and ISPs all over the planet participate in that.

Oh, as far as Netflix shifting the delivery costs-- that's the least of their worries. Transit expenses pale in comparison to the licensing fees paid for all the content they stream.

guppy_fish
Premium
join:2003-12-09
Lakeland, FL
kudos:3
Reviews:
·Verizon FiOS
Verizon, being tier one and basically IS a primary backbone of the internet in the US could care less where it comes from as they never pay for peering. Netflix on the other hand has to pay to push out there subscription content.

Sure lots of non teir one providers are working on alternatives, that's because they have too

rebus9

join:2002-03-26
Tampa Bay
Reviews:
·Verizon FiOS
·Bright House
said by guppy_fish:

Verizon, being tier one and basically IS a primary backbone of the internet in the US could care less where it comes from as they never pay for peering. Netflix on the other hand has to pay to push out there subscription content.

When a network is SFP (settlement-free peering) that does NOT mean the traffic is free. Ports at 10/40/100 GigE are not free. And they do not peer with EVERY other provider at EVERY exchange point. That would be prohibitively expensive, so they have to backhaul a lot of that traffic-- some of it locally or a few dozen miles, some of it hundreds of miles or more.

Even for Tier 1's, it's a lot more efficient to source the traffic on-net and distribute it locally, than to pull across transit/SFP and then backhaul it.

The longer the distance, the more infrastructure each byte touches. As those flows increase, so must the infrastructure to support them.

The mistake you're making is focusing on "they are a tier 1 so they don't have to pay for bandwidth". UNTRUE. Traffic costs them money. A LOT of money. As a tier 1, they simply don't have to pay SOMEONE ELSE to carry it beyond their own ASN.

guppy_fish
Premium
join:2003-12-09
Lakeland, FL
kudos:3
Reviews:
·Verizon FiOS
I understand all of this, maybe I'm just dumbing down the responses unintentionally.

NetFlix if one believes the reports is becoming the single biggest source of traffic by volume:

»www.nbcnews.com/technology/techn···h-119517

The issue is there are NO single company that can provided the bandwidth NetFlix is consuming, there now with amazon but even that will run out of steam .. so that why there looking to make direct connections to major cable and telco's

»www.businessinsider.com/netflix-···-2012-11

The entire model of peering is somewhat in question, it just happens to be Netflix that has the traffic to push the issue because the number of effected subscribers and the raw data required to be transited.

Another issue, is the actual networks ( internet ), are mostly owned by cable or telco's and they have no interest in having to support Netflix as its a direct competitor

McBane

join:2008-08-22
Plano, TX
I dunno about most people since I'm not sure if Netflix uses more than one CDN but my streams use Akamai which are directly connected to the Verizon's backbone.

guppy_fish
Premium
join:2003-12-09
Lakeland, FL
kudos:3
Reviews:
·Verizon FiOS
Netflix does use more than one, Level3, Akamai and Amazon off the top of my head.

But these company's all have limited peering to Verizon, it may be quite large peering, but when you have a couple hundred thousand streams going the peering chokes.

The hole thing about OpenConnect is that NetFlix is running out of company's to act as distribution points, look at the Amazon link, there losing almost a billion a year and Netflix will be out of option as all these peering points are realizing its not making them money