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Netflix Agrees To Pay Comcast For Access To Its Broadband Network

Discussion in 'Off-Topic Discussion' started by CatfishRivers, Feb 23, 2014.

  1. CatfishRivers

    CatfishRivers Well-Known Member

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    Netflix Agrees to Pay Comcast For Access to Its Broadband Network (click for full article)

    by Kelsey Campbell-Dollaghan - Feb. 23, 2014


    -- In a landmark deal, Netflix has agreed to pay Comcast for direct access to the company's broadband system. The announcement comes after months of dispute between Netflix and broadband providers about who should pay for increasing bandwidth loads.


    If you haven't been following the streaming wars, here's the basic gist: As Netflix has grown, an argument over who should pay for the increasing loads—the broadband provider or Netflix—has emerged. In the meantime, Netflix has been buying its bandwidth from a company called Cogent, which acts as the middle man between Netflix and Comcast or Verizon, which in turn deliver the stream to you. But that agreement hasn't worked out very well.


    Under this new deal, Netflix will access Comcast's network directly—or, almost directly, according to the Wall Street Journal, which first reported the news this afternoon. "Under the deal, Netflix won't be able to place its servers inside Comcast's data centers, which Netflix had wanted," the paper explains. "Instead, Comcast will connect to Netflix's servers at data centers operated by other companies."


    See more at: Netflix Agrees to Pay Comcast For Access to Its Broadband Network
     
  2. CatfishRivers

    CatfishRivers Well-Known Member

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    How Comcast's Netflix Bullying Is Going to Cost Us All (click for full article)

    by Eric Limer - Feb. 23, 2014

    -- Earlier today, Comcast and Netflix announced that they'd reached an agreement to help end stuttery Netflix performance to Comcast subscribers. It's actually not a breech of net neutrality; it's a different flavor of trouble and it's going cost all of us.

    When a U.S. Appeals Court invalidated the FCC's net neutrality rules, it opened up the doors to all kinds of shady business where ISPs might extort other services for money if they wanted to reach users. This is not what's happening with Comcast and Netflix though. Not quite. It's something far bigger than just that.


    See more at: http://gizmodo.com/how-comcasts-netflix-bullying-is-going-to-cost-us-all-1529227229
     
    Last edited: Feb 23, 2014
  3. zim2dive

    zim2dive Active Member

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    this strikes me as a huge and bad slippery slope. ISPs will make $ on both ends (just like text messages)... charging Netflix, and then when they (eventually) go to metered billing on the consumer end.
     
  4. ChrisG8

    ChrisG8 Well-Known Member

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    Oh no, people are going to think the sky is falling again. Netflix paying Comcast is good for consumers, those that don't use Netflix shouldn't have to pay more because the system is bogged down by Netflix streaming. Sure Netflix fees are going to have to go up but only those using Netflix will pay the fees as they should. Competition will prevent Comcast from price gouging, this source of revenue will reduce pressure to raise rates for residential customers. None of these things so many see as a major concern ever scare me, I decide what companies I do business with and if Comcast doesn't offer value and quality, I will go elsewhere, this doesn't scare me in the slightest.
     
  5. mrspock

    mrspock Active Member

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    On a somewhat related note, Comcast has reinstated bandwidth cap on consumers, it's 300GB/mth and anything above that is $10/50GB
     
  6. ChrisG8

    ChrisG8 Well-Known Member

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    Comcast may start using caps in markets that don't currently have caps but I sure can't see how that is related to this agreement.
     
  7. CatfishRivers

    CatfishRivers Well-Known Member

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  8. CatfishRivers

    CatfishRivers Well-Known Member

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    Marc Andreessen says more net neutrality laws are not the answer ? Tech News and Analysis (click for full article)

    by Mathew Ingram - Feb. 24, 2014

    Comcast's recent deal with Netflix re-ignited a debate on net neutrality and how best to implement it, with venture investor Marc Andreessen arguing that competition is what will solve the problem, not more regulations


    The concept of net neutrality - the idea that cable networks should not give preferential treatment to certain kinds of content - often seems somewhat theoretical, which is why many people latched onto the recent "peering" deal between Comcast and Netflix. They appeared to see it as a tangible sign of how large networks like Comcast could derail that principle, even though a number of experts (including our own Stacey Higginbotham) have argued that the arrangement has very little to do with net neutrality at all.


    Despite this, however, the news triggered a heated discussion on Twitter about whether the Comcast deal was evil or not - a debate that included Andreessen Horowitz founder Marc Andreessen, who also held forth on the topic earlier this month. It started with a remark from Matt Yglesias - a former writer with Slate who recently joined Pierre Omidyar's new First Look Media project:


    See more at: Marc Andreessen says more net neutrality laws are not the answer ? Tech News and Analysis
     
  9. revue5

    revue5 Well-Known Member

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    I think this agreement is about bandwidth that ensures Netflix PQ.

    The ISP data cap (will) also put a cap on streaming Netflix contents (no more "all you can eat", netflix biggest advantage). This may or may not be related to this agreement. But IMO, it’s a fare game for discussion since many users signed up for PQ + unlimited streaming.

    Seems that the cap (will) give ISPs control over streaming services by controlling data delivered though “public internet” and allowing other data (e.g., Xfinity, On-Demand, Xbox 360, ..etc services) to be delivered though existing “cable private IP network” without any cap. With that in mind, I think Netflix (& others) are losing the advantage.

    just curios, will at some point this drives netflix to only be offered via cable subscription? or will the user have option?
     
  10. ChrisG8

    ChrisG8 Well-Known Member

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    Of course Netflix customers signed up for unlimited streaming at high quality, they still can do that but with caps and the data runs over the cap, there will be an additional fee. I have been running Netflix a bunch and have gone over 300GB every month since Netflix started offering SuperHD so I can sure see that happening. Netflix paying Comcast a fee sure doesn't make Comcast have to start using caps in markets that don't have caps, that decision should be separate and as a result of other factors.

    Competition and the threat of Google Fiber moving into any given market are the factors that make me comfortable that I will continue to have options that I like for internet service and TV. Government regulations are something I don't like, our federal deficit is now over $17,000,000,000,000 and I would prefer the idiots responsible for that mess stay out of my life as much as possible, they don't even seem to be concerned about that deficit, and I should trust them to come up with a solution for continuing to have affordable, reliable, fast internet service? No thanks, I will happily take my chance with Comcast and Comcast's competition which has worked great and Comcast doesn't run a deficit and knows how to manage its business revenue and expenses.
     
    Last edited: Feb 24, 2014
  11. revue5

    revue5 Well-Known Member

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    Keep in mind, "an additional fees" can be anything...?? (from zero to tens of thousands per a month). The way i see this, cap + unlimited streaming = limited streaming.
    i.e., Netflix $10 unlimited streaming per a month is not really the best deal for those with data cap, in fact, it could run an oversize internet tab (if no one is watching).
    It might be easier to control it if just one person in the household using it. Hopefully, they'll introduce data cap family profile ... :D

    Competition is always good, but I doubt that will guarantee no cap, I believe the cap is here to stay. I rather pay a flat fee for unlimited streaming so, my hope, ISPs will offer most of the streaming services delivered though their existing "private IP network" cap free and also, add more streaming devices support to that category (like Comcast/XBOX 360). This way I'll just use the "public internet" (w/ cap) for non-streaming and stream vids via isp services cap free.
     
  12. CatfishRivers

    CatfishRivers Well-Known Member

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  13. ChrisG8

    ChrisG8 Well-Known Member

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    I still don't have a cap here but I did go to the Comcast site to read about caps and it appears my cap will be 350GB if enabled. That won't be an issue for my household. I disagree that there is some kind of implied "free" or "low cost" with unlimited Netflix streaming. I have read the agreement and I sure don't see that language, just the opposite in fact, Netflx doesn't promise the internet service will be low cost or free, that is between the Netflix customer and the ISP being used.
     
  14. ChrisG8

    ChrisG8 Well-Known Member

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    I didn't know if there would be additional cost for Netflix, just that this agreement is different than the agreements used previously or new agreements with other ISPs. If Netflix can continue to offer unlimited streaming at $8/month, my hat's off to Netflix, I just don't think it can be done.
     
  15. sparkyscott21

    sparkyscott21 Moderator Staff Member

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    As scammers continue to get more and more creative with their endeavors, it is becoming increasingly important that we keep our guard up at all times. We recently covered a new scam that targets Verizon Wireless subscribers and looks to take over control of their accounts, but a new scam targeting Netflix customers is even more dangerous.

    Malwarebytes’ Jérôme Segura recently uncovered the scam, which uses a fake website to steal Netflix users’ login credentials. The scam doesn’t stop there, however.

    After a user enters his or her credentials on the login page, an error message is displayed.

    “We have detected unusual activity on this account,” the message reads. “To protect this account from unauthorized use, we have temporarily suspended this username. To regain access to your account please contact member services at 1-800-947-6570.”

    Segura called the number provided and played along with everything the scammers instructed him to do.

    After identifying himself as a Netflix customer care representative, one scammer instructed Segura to download and install “NetFlix Support Software,” which was actually just popular remote PC login client TeamViewer.

    “After remotely connecting to my PC, the scammer told me that my Netflix account had been suspended because of illegal activity,” Segura wrote. “This was supposedly due to hackers who had infiltrated my computer as he went on to show me the scan results from their own ‘Foreign IP Tracer’, a fraudulent custom-made Windows batch script.”

    The scammer then went on to tell Segura how they would fix the problem, and to give him a fake $50 Netflix credit to apologize for the inconvenience. During their conversation, however, the security researcher monitorED the scammers as they dug through his computer and downloaded any files that looked appealing, including various planted files such as “banking 2013.doc.”

    Segura’s findings are linked below in our source section and needless to say, beware this scam and never enter your login credentials into any site other than Netflix.com. Segura’s video of the ordeal follows below.









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    Last edited by a moderator: Jul 30, 2014
  16. jonw747

    jonw747 Well-Known Member

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    This whole issue is messy, but as long as Netflix has stopped the finger pointing and is working on actual solutions, that's a good thing. Expecting Comcast and Verizon to host their servers for free and be grateful to do so was quite the act of hubris.
     
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  17. CatfishRivers

    CatfishRivers Well-Known Member

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    Looks like Netflix has paid Comcast but they're not happy about it. The finger pointing has started again:

    Netflix blasts Comcast and Verizon on net neutrality: 'some big ISPs are extracting a toll' | The Verge
     
  18. sparkyscott21

    sparkyscott21 Moderator Staff Member

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    In an extensive post, Netflix CEO Reed Hastings called for “strong net neutrality,” as opposed to the “weak net neutrality” that currently exists, and which allows ISPs to theoretically – if not actually – bully Internet businesses into paying fees in order for consumers to be able to enjoy their services at better speeds.

    “The essence of net neutrality is that ISPs such as AT&T and Comcast don’t restrict, influence or otherwise meddle with the choices consumers make,” Hastings said. “The traditional form of net neutrality which was recently overturned by a Verizon lawsuit is important, but insufficient. “

    “Strong net neutrality additionally prevents ISPs from charging a toll for interconnection to services like Netflix, YouTube, or Skype, or intermediaries such as Cogent, Akamai or Level 3, to deliver the services and data requested by ISP residential subscribers,” Hastings wrote. “Instead, they must provide sufficient access to their network without charge.”

    He admitted that Netflix will “reluctantly” pay for interconnection while this “weak net neutrality exists” but only to improve the experience of consumers interested in its services, not to downgrade the performance of other Internet resources.

    Hastings highlighted Cablevision as a “strong net neutrality” company, asking that Comcast will do the same. “Comcast has been an industry leader in supporting weak net neutrality, and we hope they’ll support strong net neutrality as well,” the exec wrote, explaining that as soon as Netflix agreed to pay the toll, Comcast subscribers got a good Netflix streaming experience again rather than “high buffering rates, long wait times and poor video quality.”

    “Once Netflix agrees to pay the ISP interconnection fees, however, sufficient capacity is made available and high quality service for consumers is restored. If this kind of leverage is effective against Netflix, which is pretty large, imagine the plight of smaller services today and in the future,” Hastings said. “Roughly the same arbitrary tax is demanded from the intermediaries such as Cogent and Level 3, who supply millions of websites with connectivity, leading to a poor consumer experience.”

    The Netflix CEO asked ISPs to offer customers the data speeds they promise in their contracts no matter what online services consumers choose to, and reminded them that while they ask Internet companies to join in and share the costs, they aren’t inviting them to a share of the profits as well.

    At the same time, Hastings took a hard stance against Verizon who once said that Netflix is “unilaterally ‘dumping as much volume’ as it wants onto their networks,” saying that it’s customers who “pay a lot of money for high speed Internet” that choose to actually download Netflix content.

    “Interestingly, there is one special case where no-fee interconnection is embraced by the big ISPs — when they are connecting among themselves,” the exec said. “They argue this is because roughly the same amount of data comes and goes between their networks. But when we ask them if we too would qualify for no-fee interconnect if we changed our service to upload as much data as we download [in other words moving to peer-to-peer content delivery] – thus filling their upstream networks and nearly doubling our total traffic – there is an uncomfortable silence. That’s because the ISP argument isn’t sensible. Big ISPs aren’t paying money to services like online backup that generate more upstream than downstream traffic. Data direction, in other words, has nothing to do with costs.”

    Meanwhile, Comcast already responded with a statement in response to Hastings’ strongly worded call to action for stronger net neutrality.

    “There has been no company that has had a stronger commitment to openness of the Internet than Comcast. We supported the FCC’s Open Internet rules because they struck the appropriate balance between consumer protection and reasonable network management rights for ISPs. We are now the only ISP in the country that is bound by them, Comcast Executive Vice President David L. Cohen said.

    “The Open Internet rules never were designed to deal with peering and Internet interconnection, which have been an essential part of the growth of the Internet for two decades. Providers like Netflix have always paid for their interconnection to the Internet and have always had ample options to ensure that their customers receive an optimal performance through all ISPs at a fair price. We are happy that Comcast and Netflix were able to reach an amicable, market-based solution to our interconnection issues and believe that our agreement demonstrates the effectiveness of the market as a mechanism to deal with these matters.”






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  19. CatfishRivers

    CatfishRivers Well-Known Member

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  20. Carlszone

    Carlszone Well-Known Member

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    TY, Catfish

    A very informative article that explains the situation in ways the non-tech can understand. Netflix had to pay while a deal could be had, under protest. The priority must be to improve service, not sacrifice subscriber access for the higher goal of net neutrality.

    The Telcoms must not overplay their hand here...

    Carl
     

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