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funchords
Hello
MVM
join:2001-03-11
Yarmouth Port, MA

3 recommendations

funchords

MVM

Gotta make nice while Comcast is trying to buy Time Warner Cable

Comcast can't afford a black eye right now, and the Netflix bandwidth problem that was escalating was giving them one.

I think this will turn out to be a win-win. Comcast might not like to have to swallow this deal, but it will make their customers happy long term. This makes Netflix subscribers sure to be Comcast subscribers in areas where DSL is the only other option.

RadioDoc

join:2000-05-11
La Grange, IL

1 recommendation

RadioDoc

Why wouldn't Comcast love this? They're getting revenue they weren't getting before and it should take a load off both their peering connections with Cogent, et. al. as well as the incessant whining from customers. And Netflix is pretty much cost-neutral as well since those external peering routes weren't free.

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

newview to funchords

Premium Member

to funchords
said by funchords:

Comcast can't afford a black eye right now, and the Netflix bandwidth problem that was escalating was giving them one.

Bingo

The Comcast Mafia blinked ...

jlivingood
Premium Member
join:2007-10-28
Philadelphia, PA

1 recommendation

jlivingood to funchords

Premium Member

to funchords
said by funchords:

I think this will turn out to be a win-win. Comcast might not like to have to swallow this deal, but it will make their customers happy long term.

Me too, and happy customers are obviously a good thing. In this case, customers want awesome Netflix performance and this helps Comcast and Netflix deliver just that.

RadioDoc

join:2000-05-11
La Grange, IL

RadioDoc to newview

to newview
LOL. OK, I am sure the Comcast Mafia is just fine blinking all the way to the bank.

Karl Bode
News Guy
join:2000-03-02

Karl Bode to jlivingood

News Guy

to jlivingood
Does this deal involve Comcast hosting Netflix Open Connect CDN hardware?

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

newview to RadioDoc

Premium Member

to RadioDoc
Yep
Crime DOES pay ...

RadioDoc

join:2000-05-11
La Grange, IL

1 recommendation

RadioDoc

How is this criminal?

You guys are a hoot.
onthecake
join:2003-08-08
Kansas City, MO

1 edit

1 recommendation

onthecake to jlivingood

Member

to jlivingood
said by jlivingood:

said by funchords:

I think this will turn out to be a win-win. Comcast might not like to have to swallow this deal, but it will make their customers happy long term.

Me too, and happy customers are obviously a good thing. In this case, customers want awesome Netflix performance and this helps Comcast and Netflix deliver just that.

Utter bullshit. The customers will be happy until Netflix passes theses costs on to their entire customer base while at the same time these customers will still be getting rates increased by their provider every single year.

jlivingood
Premium Member
join:2007-10-28
Philadelphia, PA

jlivingood to Karl Bode

Premium Member

to Karl Bode
said by Karl Bode:

Does this deal involve Comcast hosting Netflix Open Connect CDN hardware?

It is interconnect.
AVonGauss
Premium Member
join:2007-11-01
Boynton Beach, FL

2 recommendations

AVonGauss to onthecake

Premium Member

to onthecake
said by onthecake:

Utter bullshit. The customers will be happy until Netflix passes theses costs on to their entire customer base while at the same time these customers will still be getting rates increased by their provider every single year.

I really doubt Level 3, Cogent provide transit and CDN services for free...

RadioDoc

join:2000-05-11
La Grange, IL

1 recommendation

RadioDoc

Forget it, he's rolling

connections
@pppoe.ca

-3 recommendations

connections to RadioDoc

Anon

to RadioDoc
said by RadioDoc:

How is this criminal?

You guys are a hoot.

I pity the crazies that post here.

RadioDoc

join:2000-05-11
La Grange, IL

1 recommendation

RadioDoc

said by connections :

said by RadioDoc:

How is this criminal?

You guys are a hoot.

I pity the crazies that post here.

Self pity is self-defeating. Seek assistance.

connection
@pppoe.ca

-2 recommendations

connection

Anon

said by RadioDoc:

Self pity is self-defeating. Seek assistance.

You're the one that needs to seek assistance.

connections
@pppoe.ca

-1 recommendation

connections to RadioDoc

Anon

to RadioDoc
said by RadioDoc:

Forget it, he's rolling

and so are you.

RadioDoc

join:2000-05-11
La Grange, IL

1 recommendation

RadioDoc

OK, one more and I'll let you revel in your superior wit.

This is and was an ongoing business negotiation no less than what your local grocer negotiates to have milk delivered every day. If you think that is some kind of Mafia extortion, I really don't want to live in your world.

OSUGoose
join:2007-12-27
Columbus, OH

OSUGoose to funchords

Member

to funchords
Your assuming the local dsl provider don't already have this deal.
OSUGoose

1 recommendation

OSUGoose to RadioDoc

Member

to RadioDoc
Exactly this just took a middleman out of the routing, vs Netflix dumping on to Cogent and Comcast user relying on the innerconnect between Comcast and Cogent to not bog down. Now Netflix is dumping directly onto comcasts backbone when its a Comcast user requesting the connection.
OSUGoose

OSUGoose to onthecake

Member

to onthecake
No costs to pass vs it going and paying for it on Cogent its now transiting on Comcast directly.
BosstonesOwn
join:2002-12-15
Wakefield, MA

BosstonesOwn to jlivingood

Member

to jlivingood
So that is a no !

Please feel free to answer the question instead of going around it.

A better answer would have been, No this deal does not involve a CDN Rack or any CDN gear, it is an interconnect deal.

Then in the sb panel for it you could have said that Comcast had no interest in hosting any netflix CDN gear and the interconnect made better financial sense for comcast.

connections
@pppoe.ca

connections to OSUGoose

Anon

to OSUGoose
said by OSUGoose:

Your assuming the local dsl provider don't already have this deal.

My ISP is happy to host Netflix's OpenConnect appliance and other local ISPs where possible do interconnect with Netflix without double dipping special deals. They're not THAT greedy assholes.

funchords
Hello
MVM
join:2001-03-11
Yarmouth Port, MA

funchords to onthecake

MVM

to onthecake
It is possible that Netflix is simply paying Comcast what it used to pay Cogent to reach Comcast. In other words, there may not be added transit costs. (I'm guessing that we're not going to see the math.)

As far as rates go -- there is no reason to believe that Comcast will quit raising rates or that Netflix streaming will remain ~$8 a month, with or without this deal.
MyDogHsFleas
Premium Member
join:2007-08-15
Austin, TX

1 recommendation

MyDogHsFleas to funchords

Premium Member

to funchords
said by funchords:

Comcast can't afford a black eye right now, and the Netflix bandwidth problem that was escalating was giving them one.

It's an interesting supposition that I imagine we'll never really know the truth about.

It could be a conspiracy theory ("Hey -- the timing of the CAN'T be a coincidence! There must be cause and effect!"), and the fact that the only source for this is the media making commentary tends to bear that out.

So maybe it's really just be a coincidence -- they may have been working on this Netflix deal at the same time the M&A work was going on, but unrelated. In a company the size of Comcast, an M&A like TWC would be closely held to a small group, and would not normally be known to others working on other deals.

Or, at the CEO's office level, maybe they finally approved the Netflix deal because they didn't want this problem hanging around while they were getting their TWC ducks in a row.

Pacomartin
join:2013-03-18
Bethlehem, PA

Pacomartin to funchords

Member

to funchords
said by funchords:

Comcast can't afford a black eye right now...

I agree. Comcast is asking the regulators to buy off on the fact that controlling 30% of the TV households, and close to half the wired cable households will not be a problem for competition.

They need all kinds of evidence that they are willing to keep the markets open.

It is similar to the airlines saying that they won't abandon any hubs after they merge (for the forseeable future).
tanzam75
join:2012-07-19

1 recommendation

tanzam75 to RadioDoc

Member

to RadioDoc
said by RadioDoc:

This is and was an ongoing business negotiation no less than what your local grocer negotiates to have milk delivered every day. If you think that is some kind of Mafia extortion, I really don't want to live in your world.

In fact, the analogy is even closer than that.

Supermarkets also charge both sides of the market. Not only does the consumer pay the supermarket for food, but the supermarket also charges the producer for the shelf space.

Pacomartin
join:2013-03-18
Bethlehem, PA

Pacomartin

Member

said by tanzam75:

Supermarkets also charge both sides of the market. Not only does the consumer pay the supermarket for food, but the supermarket also charges the producer for the shelf space.

People not directly involved in the business have a little trouble guessing how it is done.

For instance I understand that up until about 1998 networks paid their affiliate stations to carry their programming, thinking that it was a way to sell a larger audience to advertisers. Now, I believe it is the other way around, affiliates pay for programming.

I don't know how the advertising money is split. I assume that some advertising time is reserved for local stations.
Skippy25
join:2000-09-13
Hazelwood, MO

1 edit

Skippy25 to jlivingood

Member

to jlivingood
After reading additional articles on this it appears you guys did enter into the CDN agreement by peering at their server locations, but are not calling it that for some reason. Therefore I strike my previous comment.

NormanS
I gave her time to steal my mind away
MVM
join:2001-02-14
San Jose, CA
TP-Link TD-8616
Asus RT-AC66U B1
Netgear FR114P

NormanS to funchords

MVM

to funchords
said by funchords:

think this will turn out to be a win-win. Comcast might not like to have to swallow this deal, but it will make their customers happy long term. This makes Netflix subscribers sure to be Comcast subscribers in areas where DSL is the only other option.

How so? I am a DSL subscriber in a Comcast market; and see no incentive to switch to Comcast.
Tracing route to ipv4_1.lagg0.c005.sjc002.ix.nflxvideo.net [198.45.62.134]
over a maximum of 30 hops:
 
  1    <1 ms    <1 ms    <1 ms  Chihiro [192.168.102.1]
  2    32 ms    37 ms    34 ms  173-228-7-1.dsl.static.sonic.net [173.228.7.1]
  3    30 ms    30 ms    30 ms  gig1-4.cr1.lsatca11.sonic.net [70.36.243.13]
  4    51 ms    31 ms    30 ms  0.xe-5-1-0.gw.pao1.sonic.net [69.12.211.1]
  5    58 ms    62 ms    62 ms  ae2.0.gw.equinix-sj.sonic.net [50.0.2.14]
  6    31 ms    31 ms    31 ms  netflix-peering.sonic.net [209.148.113.10]
  7    63 ms    62 ms    62 ms  ipv4_1.lagg0.c005.sjc002.ix.nflxvideo.net [198.45.62.134]
 
Trace complete.
 

I reliably get a 5800 kb/s bit rate to Netflix.

funchords
Hello
MVM
join:2001-03-11
Yarmouth Port, MA

funchords

MVM

Lucky Sonic Dog!