Since i can't quote properly, i will try my best to respond accordingly. Also their may be a duplicate post as the one from the anonymous account didn't seem to go through so i joined. Here are the responses below.
First response was intended to state that the negotiation on the peering transit links are low in cost for isp's like comcast, rogers, shaw and others. Why would these isp's decide to install a cdn cache that won't add any benefit when they are already pay next to nothing. If you look at the overall business of network links, congestion, private vod, over the top vod a netflix CDN caching node would do more harm than good when you compare what little you may save on transit. Some ISP's would rather pay the transit costs than let netflix in. And for your information your first statement is far fetched stating that negotiating won't matter once netflix places all their traffic on their own cdn. If they did that ISP would welcome it as now they don't need to carry their traffic. Then they have the option to cut netflix out completely since it doesn't break net neutrality and netflix would be hurting themselves
. That is why your statement is bogus and they will always have connectivity for off-net traffic and on net being their own cdn.
Second statement I agree that once they reach a certain size that they would want to do their own thing. That being said, the way they are delivering the message is not about the experience but focused on reducing costs.
Many ISP's have CDN's that do both on-net and off-net. Not only that, they also do transparent caching built in for http traffic. I would say your statement is partially false as it isn't just the ISPs own content on their own CDN's. It is mixed content.
Open Connect is a single-purpose Content Distribution Network, and by shifting to Open Connect, from using third-party commercial CDNs, we are able to save money and keep consumer prices low.
Third statement is completely False. Fact is that ISP's CDn's provide both on-net and off-net connectivity. If a customer watches live TV on an ipad through a connection other than their own, they would use an offnet connection through akamai as an example. Cogaco currently runs this type of cdn architecture. I assume shaw go also uses akamai for offnet.
4th statement i would say consumers will welcome anything that brings them value. Redbox is looking to launch an online system to compete with netflix, and other services can compete with netflix. It is all based on the content and price. If someone else comes along and offers newer/better content at a great price, netflix consumers will look at other options.
5th statement - the difference between peering with akamai, limelight they don't compete with any of the isp's core business. It enhances the internet experience. Google caches and akamai caches that exist in isp's networks don't hurt the isp. When has youtube ever taken away from tv/vod sales? Case and Point. When you have a company offering the same content as the isp, that is where there is no benefit to the isp.
6th statement - Netflix didn't make the statement that the whole initiative is free, but to a customer reading what their ISP has to do, this insinuates to a customer that there is no cost to the ISP.
Source: ISPs can directly connect their networks to Open Connect for free. ISPs can do this either by free peering with us at common Internet exchanges, or can save even more transit costs by putting our free storage appliances in or near their network.
Again point in statement 5 response you can't compare akamai and google caches to netflix. Completely different. Akamai and google sends many things from the internet. Some examples are: software updates, game updates, webpages, video etc.
Netflix only caches their video content, which as mentioned previously competes with content the ISP is offering and selling.
7th statement- ludicrous that you think ISP's are not upgrading their infrastructure. Telus spent a huge amount to upgrade their network, shaw is doing the same with upgrading to 100 gbps backbone. In no way are these companies just sitting back and not ugrading their infrastructure. If docsis 3.1 becomes a finalized standard, that can bring Speeds that exceed fiber (1gbps) over coax. The backbone would need to be upgraded to handle future technologies and that is why they have been doing those upgrades.
Agree caps are not in the interest of consumers, but if they all unify and enforce caps what choices does a consumer have. If an isp offers unlimited bandwidth packages that are affordable, or no caps, consumers will choose those options over companies that enforce caps that are unreasonable.