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Jason Levine
Premium
join:2001-07-13
USA
reply to IowaCowboy

Re: Why should Netflix undercut cable

Netflix isn't getting "a free ride" on Comcast's infrastructure. Netflix pays their ISP for bandwidth. That ISP pays an upstream ISP for bandwidth and so on to the top level. That top level has peering agreements with other top level ISPs to "pay" for data passing back and forth.

Going up the other end, the customer pays Comcast (or Verizon or Time Warner) for bandwidth. If Comcast (or Verizon or Time Warner) isn't the "top level ISP", they pay the ISP above them and so on until you get to the top where you have those peering agreements again.

Netflix isn't "getting a free ride" any more than a local pizza shop who pays Verizon for a phone line is "getting a free ride" by Sprint letting their customers call to order pizza. (After all, they're not paying Sprint any money. Why should Sprint let their number be called?!!)
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-Jason Levine



IowaCowboy
Iowa native
Premium
join:2010-10-16
Springfield, MA
kudos:1
Reviews:
·Verizon Broadban..
·Comcast

said by Jason Levine:

Netflix isn't "getting a free ride" any more than a local pizza shop who pays Verizon for a phone line is "getting a free ride" by Sprint letting their customers call to order pizza. (After all, they're not paying Sprint any money. Why should Sprint let their number be called?!!)

Speaking of pizza shops, there is a local Domino's franchise here that will not accept orders from cell phones for security reasons. He will only accept delivery orders from landlines. He can probably tell by the caller ID as the most common landline prefixes here are 781, 782, 783, 787, 543 (Verizon in the Indian Orchard subdivision, east Springfield, and parts of Wilbraham) are the most common landline prefixes in his delivery area.

The reason he won't take calls from a cell phone is he had one of his pizza delivery guys murdered in a robbery while making a delivery so he has taken steps to protect his employees.


Jason Levine
Premium
join:2001-07-13
USA

Completely the store owner's call. Just like if Netflix decided, for some reason, "we're not allowing Comcast customers to access Netflix." The point is, though, that he *can* accept orders from people using other phone companies even though he isn't paying those other companies anything. He pays his phone company and the customers pay their phone company. The two phone companies work out among themselves how they handle calls passing between them.

Netflix does the same thing. They pay their ISP, their customers pay their ISPs and the ISPs work out how traffic passes between them. If you needed to pay every ISP for your website to be viewable on their network, running a simple web page would be too expensive for your average person.
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-Jason Levine