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story category Netflix CEO: Netflix Is Broadband Killer App
And bandwidth is cheap...
10:34AM Friday Nov 13 2009 by Karl Bode
tags: Video · business · alternatives · bandwidth · content
GigaOM directs our attention to an interesting video interview with Netflix CEO Reed Hastings, who dissects Netflix's role as the premier application for broadband. Hastings discusses how the future for Netflix is bright, given the tendency to embed every consumer device with a $10 Wi-Fi chipset, and the fact that bandwidth prices continue to drop. He doesn't get into specific bandwidth costs for the Netflix streaming service, but he cites the fact that "Moore's law is an amazing thing" in a world where Amazon now charges 5 cents a gigabyte for bandwidth and you can transfer a movie for about a nickel. "What's fueling the whole system is the end users, who are paying $40-$60 to their ISP, and that's funding the whole system," says Hastings.

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Forums » Netflix CEO: Netflix Is Broadband Killer App
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joebarnhart
Paxio evangelist

join:2005-12-15
Santa Clara, CA

This app could push providers to higher bandwidths

I absolutely love my Netflix-streaming Roku box. If I have any complaint, it's that it doesn't use enough bandwidth! They stop at 720P high-def and my set can only sync up at 1080i, so I don't get to use all that high-def goodness.

But when they remove that restriction, my internet provider is ready to serve up all that bandwidth!


aaronwt
Premium
join:2004-11-07
Woodbridge, VA
·Verizon FIOS

Re: This app could push providers to higher bandwidths

said by joebarnhart See Profile :

I absolutely love my Netflix-streaming Roku box. If I have any complaint, it's that it doesn't use enough bandwidth! They stop at 720P high-def and my set can only sync up at 1080i, so I don't get to use all that high-def goodness.

But when they remove that restriction, my internet provider is ready to serve up all that bandwidth!


Get a device that streams VUDU HDX titles if you want better quality with more bandwidth. Or get XstreamHD(if it ever launches)

Anonymous_
Anonymous
Premium
join:2004-06-21
127.0.0.1
clubs:
·RoadRunner Cable
·Time Warner Cable
·Time Warner VOIP

said by joebarnhart See Profile :

my set can only sync up at 1080i, so I don't get to use all that high-def goodness.
i bet 1 USD that the native Resolution is some odd ball one

joebarnhart
Paxio evangelist

join:2005-12-15
Santa Clara, CA

Re: This app could push providers to higher bandwidths

Ok -- you can email me my dollar...

My set's native resolution is... wait for it... 1920x1080!

It does not internally scale up 720p content from it's RGB or component video inputs, and it does not have HDMI. Lots 'o early HDTV sets do not scale 720p for some reason.

Anonymous_
Anonymous
Premium
join:2004-06-21
127.0.0.1
clubs:

Re: This app could push providers to higher bandwidths

model?

joebarnhart
Paxio evangelist

join:2005-12-15
Santa Clara, CA

1 edit

Re: This app could push providers to higher bandwidths

Pioneer PRO-610HD.

Manual available here.
b10010011
Whats a Posting tag?

join:2004-09-07
Bellingham, WA
Or push them to implement lower usage cap's and high over usage charges.
xenophon

join:2007-09-17
·Sprint Mobile Broa..

And it may kill cable too

I have a Roku box and Netflix disc and Playon for PS3.

I mostly watch 4-8 channels on cable, Discovery lineup, History, NatGeo and the like yet am paying $100/month a month on TWC.

If those channels allow streaming to hardware based players, I won't need cable TV anymore. Cable/Sat must be nervous about this as streaming is clearly the future, not broadcasting when we want to watch things, or forcing us to subscribe to channels we don't want.

- Captain Obvious

IPPlanMan
Holy Cable Modem Batman

join:2000-09-20
Washington, DC


1 edit

Re: And it may kill cable too

said by xenophon See Profile :

If those channels allow streaming to hardware based players, I won't need cable TV anymore. Cable/Sat must be nervous about this as streaming is clearly the future, not broadcasting when we want to watch things, or forcing us to subscribe to channels we don't want.
TWC doesn't want you to cut the cord... so they want to have the cap to keep you from "not needing" cable TV anymore. In the Comcast HSI Forum Bandwidth Thread, it's been shown that the 250GB cap has nothing to do with addressing congestion. Instead, it's about preventing these competitive hardware based players from establishing a foothold.

See: »Re: Bandwidth Limits/Congestion Management - All discussion here
--
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Lt. Col. Pete Newell: 1st Inf. US Army
xenophon

join:2007-09-17

Re: And it may kill cable too

^And then I simply move to another broadband provider not tied to broadcast television.
jjeffeory

join:2002-12-04
USA

1 edit

Re: And it may kill cable too

you mean THE other ONE? What if they're too slow and also have a cap? 8-\
fiberguy
My views are my own.
Premium
join:2005-05-20

Personally... I think you guys are all simply nuts... Cable, Satellite, and even phone are not "nervous"... this whole online streaming thing is really a change in the market place.

What will simply happen is this.. usage billing.. OR, you're bundle discount will get even BETTER when you bundle with their video service... (let's see if people have figured THAT out with out reading further)...

... it means that Internet stand alone will probably rise to $99.99 a month BUT will be HEAVILY discounted with a video subscription to about $49.99 a moth.

The bottom line is they're going to get their desired revenue per month one way or another.. and don't think that raising the price would be price gauging .... they're going to claim a shift in the market place and re-package their services.. plain and simple.

Further, while some people will ADD streaming to their video collection, they're not going to pull the plug, at least until the streaming option gets better and more robust, on their cable or satellite.. just not going to happen.

People still want to watch live TV.. they still want to see their episodes of their John and Kate + 8 crap as it runs.. people want to watch MTV all night.. etc etc..

Netflix is just a better way to get movies..

So, we can stop with the "end of the world" predictions now..

Matt
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..

Meh

I actually canceled my Netflix subscription because they added movies at a glacial pace. I'd rather pay a one-time $3.99 fee on my 360 for true 720p movie with 5.1 surround sound than Netflix's monthly fee.

I'm sure I'll renew my subscription when their selection and stream quality improves however.
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toddbs98

join:2000-07-08
North Little Rock, AR
clubs:
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·Sprint Mobile Broa..

Re: Meh

Since they are in talks with the major Hollywood studios to delay release of new movies till a month after retail release, in exchange for lower purchase price of the dvds, the pace of new release will get even slower.
--
Patriots always speak of dying for their country never killing for it. Bertrand Russell

Matt
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..

Re: Meh

said by toddbs98 See Profile :

Since they are in talks with the major Hollywood studios to delay release of new movies till a month after retail release, in exchange for lower purchase price of the dvds, the pace of new release will get even slower.
Yuck.
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C0deZer0
Oc'D To Rhythm And Police
Premium
join:2001-10-03
Davenport, FL
·Verizon FIOS

said by toddbs98 See Profile :

Since they are in talks with the major Hollywood studios to delay release of new movies till a month after retail release, in exchange for lower purchase price of the dvds, the pace of new release will get even slower.
What, you mean that they don't have enough subscribers to warrant just buying the bluray at street price to stream us that instead?
--
Front Line Force Fortress Forever

insomniac84

join:2002-01-03
Schererville, IN

Well to be fair netflix has no real choice but to follow the rules the studios make. Redbox is suing, but there is no possible legal way to force the content owners to allow a rental service to rent dvds at the same time the dvd goes on sale. Redbox will lose and netflix will at least get something out of the deal. Something that will allow them to keep rental costs low.

In the mean time we the consumer will just download the dvd rip from the internet rather than wait.

Eventually the industry will realize their error.

drew
Reformation
Premium
join:2002-07-10
Port Orchard, WA
clubs:
·wavebroadband

said by toddbs98 See Profile :

Since they are in talks with the major Hollywood studios to delay release of new movies till a month after retail release, in exchange for lower purchase price of the dvds, the pace of new release will get even slower.
Citation needed
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jester121
Premium
join:2003-08-09
Lake Zurich, IL

Re: Meh

So go research it, and either post back with a rebuttal or, if you can't, move on. This isn't college (or Wikipedia).

drew
Reformation
Premium
join:2002-07-10
Port Orchard, WA
clubs:
·wavebroadband

Re: Meh

Let's try this another way...

Karl Bode See Profile is secretly a far right female journalist from West Virginia.

Fox News is actually owned by North Korea.

See. Both ludicrous. Time for you to prove me wrong. *eyeroll*
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jester121
Premium
join:2003-08-09
Lake Zurich, IL
·surpasshosting
·ViaTalk

Re: Meh

But what if I don't care? (which I don't).

My point is, toddbs made a statement which apparently you don't agree with -- at least have the common decency to do a quick google search to find out of maybe, in this case, you're the one who's completely out of the loop and it's common knowledge for other people. "Citation needed" makes you sound like a fifth grader saying "nu-uh, prove it" just to be argumentative.

I got my answer with result #4 on the google search.

drew
Reformation
Premium
join:2002-07-10
Port Orchard, WA
clubs:
·wavebroadband

Re: Meh

When people make claims that aren't generally widely known, they should back up their claims with a link.

Even when they are, it's common courtesy to do it anyways. For an example, read any of the posts Karl does on the front page.
--
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C_
Kill The Socialists
Premium
join:2001-03-19


1 edit
this is a known fact if you cant spend 2 seconds googling for conference call transcripts that is your problem not toddbs98 See Profile's
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"and no matter how drunk you get .. don't lick the wall socket to test polarity..."
johan_hammy

join:2003-08-08
Dekalb, IL
You're actually quite right. These forums haven't really been about facts or people that actually know what they're talking about. Why start now?
ElJay

join:2004-03-17
The timing of new releases doesn't really bother me. If I really wanted to see a film I would have dumped $7 on a ticket at the theater and I would recommend others do the same.

Matt
Premium
join:2003-07-20
Jamestown, NC
·North State Commun..

Re: Meh

said by ElJay See Profile :

The timing of new releases doesn't really bother me. If I really wanted to see a film I would have dumped $7 on a ticket at the theater and I would recommend others do the same.
Find me a cell phone free theater that only allows adults 30 and over in and a harsh policy for people who disturb you during the movie and I might attend them more often.
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xenophon

join:2007-09-17
·Sprint Mobile Broa..

said by Matt See Profile :

I actually canceled my Netflix subscription because they added movies at a glacial pace. I'd rather pay a one-time $3.99 fee on my 360 for true 720p movie with 5.1 surround sound than Netflix's monthly fee.

I'm sure I'll renew my subscription when their selection and stream quality improves however.
For daily releases, see...
»instantwatcher.com/titles/new

If you want pop culture recent releases, Netflix streaming may not be for you. I've found lots of obscure flix and older pop culture flix that I often watch, typically 2-3 a week, in addition to the 1 DVD at a time, about 3-4 a month. For $9/month, that is a steal. I've canceled all of my movie channels as I can get them from DVDs if not available on streaming.

If I could get NatGeo, History and Discovery channels by streaming, I'd cancel cable TV altogether.
b10010011
Whats a Posting tag?

join:2004-09-07
Bellingham, WA
·Comcast Formerly ..


4 edits

So far I am not inpresssed with Netflix

I am on my third month of Netflix. We got it mainly for the streaming to our Tivo.

It's really a pain in the ass because I can not just go to the Netflix menu on the Tivo, browse the movies, and pick one like I can with Amazon and Blockbuster on the Tivo.

I have to go in to the office,
start up the computer,
go to Netflix website,
browse their selection (dont get me started on that part),
add the movie I want to watch to the streaming Que,
go back out to the living room,
navigate to the Netflix menu,
pick the movie from the Que,
I can finially start the stream.

Then the aspect ratio is often messed up so I spend ten minutes dinking with the aspect settings on tht Tivo and on my TV to find the proper aspect ratio combination that will put the Netflix stream in the proper aspect ratio.

Once I never could find the proper setting and had to watch an entire movie squished to 4:3.

If the stream gets interrupted for any reason (like Comcraptic internet service) you have to restart from the beginning then fast forward to the place you left off.

If you do not get 5* during the streaming quality test the streaming program looks worse than the average You-Tube video.

So in three months we have received one DVD (that we still have not watched) and been disappointed three times we tried streaming.

Quite frankly, I think I am going to cancel Netflix as soon as I get home.

Van
Premium
join:2009-07-08
Washington, DC

Got Netflix a few months ago and couldn't live

without it.

Love their selection, reliability, and customer service

badtrip
East Bay
Premium
join:2004-03-20
Albany, CA
·Unwired Ltd
·Comcast

Re: Got Netflix a few months ago and couldn't live

said by Van See Profile :

without it.

Love their selection, reliability, and customer service
Yep netflix is my household's $8 a mo "cable subscription". Netflix is a fantastic deal, it would take me at least a year to watch everything on their streaming service that I'm interested in...and they are adding new stuff all the time.
bobny1

join:2004-09-10
Bronx, NY

Re: Got Netflix a few months ago and couldn't live

I like the streaming process. It is reliable to both pc and tv with ps3. My only beef is the instant selection. It is mostly bad old movies with poor resolution. I wish for the new more exiting HD titles.
jjeffeory

join:2002-12-04
USA

...and so begins the war...

between companies like netflix and ISPs. Both making contrary claims on the cost of bandwidth.
johan_hammy

join:2003-08-08
Dekalb, IL

Re: ...and so begins the war...

Hrm, who would know more about the costs of last mile bandwidth... a company that outsources their IP streaming to one of the largest purchasers of IP bandwidth in the world and is only located in 44 facilities world wide

OOOOORRRRRRR

the thousands of companies that deliver connectivity to millions of homes across the country, wherever they may be including very rural America?

ogar

join:2001-12-05
Ephrata, PA
clubs:

Bandwith Usage will be the main hiccup

Me and my wife both utilize netflix streaming on a regular basis. With the major increase in TV shows we can sometimes watch 20 episodes between the 2 of us in a week.
However the one issue I can forsee hitting customers is bandwith usage.
I had my internet usage suspended for a month for utilizing over the 60 gigs PTD allows customers to use during the evernings.
Since DSL is horribel in my area I have had to buy a second cable account and switch modems in the middle of the month or drastically limit my usage from 5pm till 1am.
As more and more cable companies impose strict usage limits services like Netflx while great will be hampered by poor local service.
Forums » Netflix CEO: Netflix Is Broadband Killer App


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