I'll just leave this here:
http://www.forbes.com/sites/sa...
Netflix is choosing to fight back over rights fees, with original content, not disks.
There is often a disconnect between what makes sense to an informed individual, and what makes sense to people who bet with their money. Money is saying disks are dead, and rewarding streaming.
Yeah, well they were right on that one. Streaming is the future, Discs are the past for the company. That's where their future lies, that's where their priorites will be going forward. Their challange is to wind down the disc based service as quietly as possible to minimize consumer outrage, which would cause them to choose a different streaming service.
What, can't be bothered to review the headline before posting, Tim?
All trafic is there because it was "Requested". Networks have always based peering based on traffic flows. If Level 3 has paid for X Petabytes of Transit per month, then that's what they get.
I understand the frustration on everyone's part, but this is mainly due to the oligarchy in local ISPs. If you had a choice, you could choose one based on the level of service they had for netflix. With Netflix being such a huge draw for people, it only makes sense that in a competitive ISP market, Level 3 would be able to get cheaper transport. And/OR ISP's would just be willing to get NetFlix to Colocate inside their network.
So yeah, verizon sucks. But the main reason is the lack of competition. I wouldn't change the way peering has always been done. Its like using a sledge hammer to kill a gnat.
None of that is news. This adds nothing to the conversation. Its worthless.
The traffic isn't uniform in both directions. When it is, its an easy agreement. When its not, someone usually pays. Level3 offered to pay for the hardware to make additional connections.
But thats kind of like me telling verision that I'll pay for the router and won't charge them for using their network and expecting them to provide me with free service. There isn't enough of an incentive to allow them to agree to my free internet for Bill proposal. Same thing for most networks with unequal traffic patterns. Netflix is so big that any network they buy transit from, will cause their data flows to become unbalanced.
Yeah, that would make sense. Verison's blog just had a small hidden reference to that. Its not immideatly obvious, probably because thats a difficult thing to explain to people not versed in peering agreements.
"I've seen it. It's rubbish." -- Marvin the Paranoid Android