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Netflix Urges 'Not to Give in to Big ISPs' -- After Giving In

The same week it was revealed that Netflix has started paying Time Warner Cable for direct interconnection, Netflix CEO Reed Hastings has penned a missive over at Wired insisting we can "save the net" by "not giving in to big ISPs." Hasting's commentary reiterates earlier complaints that large ISPs are forcing Netflix to pay for direct interconnection thanks to their anti-competitive grip on the last mile:

quote:
Netflix connects directly with hundreds of ISPs globally, and 99 percent of those agreements don't involve access fees. It is only a handful of the largest U.S. ISPs, which control the majority of consumer connections, demanding this toll. Why would more profitable, larger companies charge for connections and capacity that smaller companies provide for free? Because they can.
The solution? Improved network neutrality rules, argues Netflix:
quote:
We'll never realize broadband's potential if large ISPs erect a pay-to-play system that charges both the sender and receiver for the same content. That's why we at Netflix are so vocal about the need for strong net neutrality, which for us means ISPs should enable equal access to content without favoring, impeding, or charging particular content providers. Those practices would stunt innovation and competition and hold back the broader development of the Internet and the economic benefits it brings.
Granted if Netflix really wanted to "not give in to big ISPs," they could refuse to pay for direct interconnection, instead consistently offering evidence to regulators supporting the claim that the mega-ISPs are intentionally letting peering points degrade to erect new tolls. There would obviously be lawsuits over data transparency -- but perhaps they're lawsuits worth fighting.

The alternative -- to capitulate to ISP demands then cry about it -- doesn't appear to be working very well.

Most recommended from 23 comments



Mike
Mod
join:2000-09-17
Pittsburgh, PA
·Verizon FiOS

2 recommendations

Mike

Mod

Well yeah

Do realize 90% of consumers are going to blame Netflix because herp derp internets computers window lick. That specific service doesn't work so it's their fault.

He was forced to pay them or there would be an exodus and the ISPs know it. So they did it.

Always bet on the stupidity of humans.