Thad Floryan
2014-02-23 22:45:50 UTC
I was amazed to read the following:
Netflix had 33 million U.S. streaming subscribers at the start of
the year and accounts for about one third of all traffic at peak
times on the Internet
1/3 of the entire Internet just to serve Netflix -- what a waste of
resources.
Here's the SFgate article:
http://www.sfgate.com/business/technology/article/Netflix-reaches-deal-with-Comcast-5260557.php
NEW YORK (AP) — Netflix has reached a deal with Comcast to ensure that
its TV shows and movies are streamed smoothly to households, the first
deal the online video streaming service has reached with an Internet
service provider.
The two companies said in a joint statement Sunday they're establishing
a more direct connection to provide a better service to customers that
will also allow for future growth in Netflix traffic. The companies say
the arrangement is already giving customers a better experience.
Netflix had 33 million U.S. streaming subscribers at the start of the
year and accounts for about one third of all traffic at peak times on
the Internet, according to research firm Sandvine. As the video
steaming company has grown, Internet service providers like Comcast have
pushed the company for more structured deals to enable its content to be
transmitted smoothly and reduce the strain on their networks.
While the companies did not disclose the terms of the deal, Netflix
investors will want to know how much this deal will affect the company's
bottom line and whether the costs will be passed on customers. Netflix
has been resisting paying fees to Internet companies and this deal could
open the door to similar agreements with other providers.
Netflix is already experimenting with different rate plans that charge
slightly more for households that want to stream its shows and movies on
four different screens simultaneously.
The deal comes after months of collaboration with Comcast though Netflix
will receive no preferential network treatment under the multi-year
deal, the statement said.
Comcast was ranked as the 14th fastest Internet service provider in
January, according to a table on Netflix's website. By connecting
directly to Comcast's network, Netflix should be able to boost the
quality and speed of its video streaming as it adds more customers and
prepares to start streaming its content in the ultra high definition
format this spring.
Other large Internet companies such as Google already pay broadband
providers a fee to enable more direct connections.
Comcast is the nation's number-one pay TV and Internet provider under
its XFINITY brand. The company said earlier this month that it had
agreed to acquire Time Warner Cable for $42.5 billion in stock.
Netflix had 33 million U.S. streaming subscribers at the start of
the year and accounts for about one third of all traffic at peak
times on the Internet
1/3 of the entire Internet just to serve Netflix -- what a waste of
resources.
Here's the SFgate article:
http://www.sfgate.com/business/technology/article/Netflix-reaches-deal-with-Comcast-5260557.php
NEW YORK (AP) — Netflix has reached a deal with Comcast to ensure that
its TV shows and movies are streamed smoothly to households, the first
deal the online video streaming service has reached with an Internet
service provider.
The two companies said in a joint statement Sunday they're establishing
a more direct connection to provide a better service to customers that
will also allow for future growth in Netflix traffic. The companies say
the arrangement is already giving customers a better experience.
Netflix had 33 million U.S. streaming subscribers at the start of the
year and accounts for about one third of all traffic at peak times on
the Internet, according to research firm Sandvine. As the video
steaming company has grown, Internet service providers like Comcast have
pushed the company for more structured deals to enable its content to be
transmitted smoothly and reduce the strain on their networks.
While the companies did not disclose the terms of the deal, Netflix
investors will want to know how much this deal will affect the company's
bottom line and whether the costs will be passed on customers. Netflix
has been resisting paying fees to Internet companies and this deal could
open the door to similar agreements with other providers.
Netflix is already experimenting with different rate plans that charge
slightly more for households that want to stream its shows and movies on
four different screens simultaneously.
The deal comes after months of collaboration with Comcast though Netflix
will receive no preferential network treatment under the multi-year
deal, the statement said.
Comcast was ranked as the 14th fastest Internet service provider in
January, according to a table on Netflix's website. By connecting
directly to Comcast's network, Netflix should be able to boost the
quality and speed of its video streaming as it adds more customers and
prepares to start streaming its content in the ultra high definition
format this spring.
Other large Internet companies such as Google already pay broadband
providers a fee to enable more direct connections.
Comcast is the nation's number-one pay TV and Internet provider under
its XFINITY brand. The company said earlier this month that it had
agreed to acquire Time Warner Cable for $42.5 billion in stock.