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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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By random2 on 6/9/2014 6:41:16 PM , Rating: 2
"They never should have ever agreed to this and instead should have pushed the FCC to regulate Comcast and other ISPs from charging anything on top of the bandwidth promised to us."

Unfortunately they have hundreds of thousands of customers (growing daily) they need to service effectively TODAY, along with immediate plans to stream higher bitrate content to their customers.

This is like the old Pilot training adage. "Whatever happens inflight, concentrate first on keeping the aircraft flying and in the air, then worry about whatever other problems there may be"


“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls














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