Following Verizon's Lawsuit Threat, Netflix to End ISP “Speed Warnings” on June 16
June 9, 2014 1:57 PM
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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:
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:
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6/10/2014 1:09:50 AM
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".
"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer
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