[172845] in North American Network Operators' Group

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Re: Verizon Public Policy on Netflix

daemon@ATHENA.MIT.EDU (Owen DeLong)
Fri Jul 11 12:57:29 2014

X-Original-To: nanog@nanog.org
From: Owen DeLong <owen@delong.com>
In-Reply-To: <61DC6BC4ABA10E4489D4A73EBABAC18B0237F334@EX01.swan.local>
Date: Fri, 11 Jul 2014 09:57:10 -0700
To: =?windows-1252?Q?Vitkovsk=FD_Adam?= <adam.vitkovsky@swan.sk>
Cc: NANOG <nanog@nanog.org>
Errors-To: nanog-bounces@nanog.org


On Jul 11, 2014, at 1:32 AM, Vitkovsk=FD Adam <adam.vitkovsky@swan.sk> =
wrote:

>=20
>> -----Original Message-----
>> From: NANOG [mailto:nanog-bounces@nanog.org] On Behalf Of Matthew
>> Petach
>> Sent: Friday, July 11, 2014 3:35 AM
>>=20
>>=20
>> So, if Netflix had to pay additional money to get direct links to =
Verizon, you'd
>> be OK paying an additional 50cents/month to cover those additional =
costs,
>> right?  And when Time Warner also wants Netflix to pay for direct
>> connections, you'd be ok paying an additional 50cents/month to cover =
those
>> costs as well, right?  And another 50cents/month for the direct =
connections
>> to Sprint?  And another 50cents/month for the direct connections to
>> cablevision?  (repeat for whatever top list of eyeball networks you =
want to
>> reference).
>>=20
>> At what point do you draw the line and say "wait a minute, this model =
isn't
>> scalable; if every eyeball network charges netflix to connect =
directly to them,
>> my Netflix bill is going to be $70/month instead of $7/month, and I'm =
going to
>> end up cancelling my subscription to them."
>>=20
>>=20
>> Matt
>=20
> I disagree as all of this makes perfect sense.
>=20
> Would it be right if Netflix comes to You and says we see you've got a =
lot of our customers hooked up to your backbone so to serve better =
service we'd like to connect to your network directly.=20
> And you goes: so you would like to become our customer? Sure this is =
the monthly fee for the link and transport service that would suite your =
needs.=20
> And Netflix goes: well how about you build the link to us bearing all =
the costs and you gonna charge us nothing for the transport you provide, =
deal?=20
> What would be your answer?=20

Nope=85 It=92d be totally wrong, and if I were Netflix, my response =
would be:

No, I don=92t want to be your customer. I want to work together with you =
as peers to improve the situation for our mutual customers.

Which seems to be what Netflix is trying to do, having made a variety of =
attachment mechanisms readily available without charging the ISPs for =
any of them. Sure, the ISP may incur additional costs in reaching any of =
the available Netflix solutions, but none of that money is actually =
going to Netflix, unlike the ISPs attempt to get Netflix to subsidize =
their network to provide service to customers that are already paying =
them to receive Netflix (and other things).

Owen


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