Print 31 comment(s) - last by NaughtyGeek.. on Jun 11 at 12:09 PM

Netflix says that its “transparency campaign” will end later this month

Well, that didn’t last long. Netflix recently began throwing up warning messages for its streaming customers to alert them when their ISP’s network was congested. The first targets of the warning messages were customers running on AT&T and Verizon networks, and this is what those customers saw during periods of heavy congestion:

Verizon throttling message
Interestingly, Verizon customers will still seeing slow network speeds on Netflix despite the fact that the latter is paying the former for a “paid peering” arrangement that is supposed to alleviate bandwidth chokeholds.
Following Netflix’s decision to display the warning messages, Verizon threatened legal action, stating in a letter, “In light of this, Verizon demands that Netflix immediately cease and desist from providing any such further 'notices' to users of the Verizon network.”
Netflix responded, stating:
This is about consumers not getting what they paid for from their broadband provider.  We are trying to provide more transparency, just like we do with ISP Speed Index, and Verizon is trying to shut down that discussion.
Netflix is now taking a more measured approach, stating that its “transparency campaign” to alert customers about reduced network speeds is “scheduled to end on June 16,” although it could "evaluate rolling it out more broadly" in the future. Whether the “scheduled” end was already predetermined by the company brass or a result of Verizon’s legal threats remains to be seen. However, Netflix isn’t about to let the matter rest completely, as the company goes on to state:
Some broadband providers argue that our actions, and not theirs, are causing a degraded Netflix experience. Netflix does not purposely select congested routes. We pay some of the world’s largest transit networks to deliver Netflix video right to the front door of an ISP. Where the problem occurs is at that door -- the interconnection point -- when the broadband provider hasn’t provided enough capacity to accommodate the traffic their customer requested.
Some large US ISPs are erecting toll booths, providing sufficient capacity for services requested by their subscribers to flow through only when those services pay the toll. In this way, ISPs are double-dipping by getting both their subscribers and Internet content providers to pay for access to each other.
It remains to see how this war or words will play out in the end, but Netflix’s own internal data shows that both AT&T and Verizon are nowhere near the top when it comes to average data speeds for U.S.-based Netflix streaming customers. In fact, Verizon DSL is dead last and even Verizon’s high-speed FiOS service could must no more than 10th place out of a total 16 ISP services that were measured for the month of May:

Source: Netflix

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RE: Embarrasing.
By roykahn on 6/9/2014 5:07:43 PM , Rating: 2
It's OK, the free market will sort things out. Milton Friedman said so.

RE: Embarrasing.
By Morg72 on 6/9/14, Rating: 0
RE: Embarrasing.
By room200 on 6/10/2014 1:00:18 AM , Rating: 4
Bullsh!t. It's not government intrusion; it's unfettered capitalism that has a basis in the conservative mantra of regulate nothing and de-regulate everything. Now you want the government to step in? Well, the oligarchs have you just where they want you. Without big bucks you have no voice.

But, isn't that the way you guys always wanted it to be? Truth be told, you only want people who think like yourselves to be able to vote, but the problem with that is the kinds of things you're seeing will only get worse with these "money is speech" types. You think they'll care about what YOU think? lol

RE: Embarrasing.
By room200 on 6/10/2014 1:09:50 AM , Rating: 3
Furthermore, as far as the housing crash goes you have no idea what you're talking about and you're only parroting Faux News talking points. The sub-prime meltdown had NOTHING to do with government intervention. The majority of sub-prime loans were handled by private mortgage companies which were not affected by the CRA. more than 84 percent of the sub-prime mortgages were from private companies who engaged in shady mortagage binds, derivatives, CDOs, etc. and only 6% of higher prced loans can be attributed the CRA (which was passed in 1977). All of that was Wall Street, not "Fannie and Freddie".

RE: Embarrasing.
By NellyFromMA on 6/10/2014 10:06:00 AM , Rating: 2
Nothing about the ISP market is free in America. Perhaps if it was, like it is in Europe and Asia, then this mess would sort itself out (or not occur in the first place).

RE: Embarrasing.
By roykahn on 6/10/2014 5:27:53 PM , Rating: 2
The whole notion of free markets is BS. Nor can it exist, nor is it good. The basic assumptions of such economics are BS, so you can safely throw out most of what it extols. Information is not free and available to all and can never be. Society's elite crave information imbalance and it's how many people base their professions

If you want the ISP market to be "free" then please allow deceptive advertising, ISP contracts that trap customers and ensure the ISP always gets its way, inadequate problem resolutions, collusion, no transparency or accountability, etc. A theoretical free market mostly favors those who are the greediest, deceptive, and ruthless. The government (in theory again) is meant to represent the overall population and thus limit the chances of the consumer getting screwed.

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