said by Cdnexpert:
Last point i forgot to mention is the actual utilization.
If netflix accounts for 30% of an ISP overall traffic, if they launched this, super HD is double the average bitrate. There is a potential that 60% of network traffic would be netflix which translates to congestion. Also, if your ISP has data caps, look out consumer this isn't in your best interest.
Having that additional traffic not on the ISP network is actually better for consumers as there is less congestion and data caps won't easily get hit.
You see Shaw does not care about reducing 30% load on their backbone - that backbone is not fully utilised anyways and they are upgradingit to 100gbps. This is CHEAPER than hosting a netflix CDN.
Secondly, dont get me wrong, but why does netflix want this to be free again? Netflix is not an essential service for an ISP to pay for. They are asking Shaw etc to pay for the hosting costs. Why? Why would anyone in their right minds accept this deal? If you run a company, you would not want a deal which causes you losses. Netflix wants your ISP to pay for you to get better quality content?!! Which planet do they live in? Which ISP would agree to such a thing?
Telus went into this agreement because they benefit from it too. Their backbone and peering isnt as big as Shaw's and they dont have a good VOD experiance on their TV system. Shaw benefits nothing from it. And fourth, if my connection can support it, why doesnt netflix give me a super HD stream anyways?
Netflix needs to pay for the hosting costs (rack space, power, cooling and personnel) before this will happen. If they want to save transit costs they can also host it on iWeb and peer to TORIX.
If netflix accounts for 30% of an ISP overall traffic
Sorry to break your heart, but it probably isnt. Every person I know who tried netflix canada, either bought an unblock-us subscription or disconnected netflix. (incl me, this month is my last). Netflix canada isnt that great - it need much more content to be a viable alternative.
Cant get rid of cable - need that for the News, and international channels. (Can get the rest of the shows from youtube)
Netflix needs more content and live streams such as the news and weather to actually be able to replace cable. Sadly, cable stays for now. :-(--
Bell Canada: It is Preposterous" that consumers should get content they want on their cellphones.