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How Netflix Eats the Internet

pacopico writes "Every night, Netflix accounts for about one-third of the downstream Internet traffic in North America, dwarfing all of its major rivals combined. Bloomberg Businessweek has a story detailing the computer science behind the streaming site. It digs into Netflix's heavy use of AWS and its open-source tools like Chaos Kong and Asgard, which the Obama administration apparently used during the campaign. Story seems to suggest that the TV networks will have an awful time mimicking what Netflix has done."

46 of 303 comments (clear)

  1. Re:Is Netflix by h4rr4r · · Score: 5, Insightful

    No, they pay their ISP bills like everyone else.

  2. Re:Still not good enough for me. by h4rr4r · · Score: 5, Insightful

    I feel that way about cable.
    Too much content I don't want, advertising, and shows are played via some schedule instead of streamed when I want. Sure there are workarounds like DVRs, but that is just a bandaid on a huge gaping wound.

  3. Just like eating an elephant by Joehonkie · · Score: 5, Funny

    One byte at a time?

  4. Don't worry about the networks... by MitchDev · · Score: 5, Insightful

    They'll use their bought and paid for congress critters to get Netflix legislated to death and use their industry connections to get even more content taken away from Netflix to keep them under control...

    1. Re:Don't worry about the networks... by SilentStaid · · Score: 5, Insightful

      You underestimate the power of Netflix and the demand that customers have for it. Networks will adapt, or die. Sure, they might adapt in a way we don't like (I.E. putting out their own slightly worse version where they can still sell advert space like Hulu) but video streaming, on demand, is here to stay.

      "You can't stop the signal." ~ Mr. Universe.

    2. Re:Don't worry about the networks... by mu51c10rd · · Score: 4, Interesting

      You underestimate the power of Netflix and the demand that customers have for it.

      Many do...it was a wakeup call for the cable/satellite operators when Disney signed with them. Disney is one of the kings of content...and they see something more valuable in Netflix than their current (soon to be previous) contract with the Starz cable channel. Netflix charges 8 dollars a month for offering more content than many people who pay 100 dollars a month get from their cable subscription.

  5. The TV networks have had an awful time adapting fo by Anonymous Coward · · Score: 3, Insightful

    Comparing TV networks to Netflix is like comparing an ancient Spartan soldier to a modern, fully armed, US Marine.

  6. Re:Is Netflix by fuzzyfuzzyfungus · · Score: 5, Insightful

    Basically taking advantage of an infrastructure it doesn't pay for?

    If anything(given that buildout is expensive, and keeping a run of either copper or fiber maintained and backhoe-free isn't free), Netflix is, in addition to paying its bandwidth bills just like everybody else, providing the rather valuable service of giving millions of customers a reason to buy more bandwidth.

    Given the steady advances in cramming bits over lines, even shitty legacy copper, the more bandwidth your customers want to buy, the more bandwidth you get to sell per fixed-cost(rights of way, keeping the lights on at HQ, dudes in bucket trucks, etc.)

  7. Re:Is Netflix by sconeu · · Score: 5, Insightful

    And we are paying for that downstream bandwidth. Netflix, I'm sure, pays an insane amount to their ISP for the bandwidth they use.

    You are using the same logic that AT&T used when they wanted their "google tax".

    --
    General Relativity: Space-time tells matter where to go; Matter tells space-time what shape to be.
  8. I heard other numbers by slashmydots · · Score: 4, Interesting

    I just heard another news story that said it's 3% of all internet traffic in the US at night. That's a pretty big discrepancy. Given all other services like youtube and Hulu and all peer to peer, I seriously doubt it's 1/3. It probably is 3%.

    1. Re:I heard other numbers by SJHillman · · Score: 5, Insightful

      YouTube - You watch a short, low quality video, then spend a little time browsing for another video.
      Netflix - You are continuously streaming high quality video for anywhere from 20 minutes (30 min TV show) to 2+ hours (movies).

      YouTube might have more users at any given time, but it's completely plausible that Netflix utterly crushes it in terms of how much bandwidth is used. Given that Hulu, which is probably Netflix's single largest competitor, posted around 1/5 the revenues for 2012, it's a drop in the bucket compared to Netflix... and Netflix is more friendly to people that want to continuously watch episodes/movies due to a lack of commercial breaks.

    2. Re:I heard other numbers by Threni · · Score: 5, Funny

      YouTube spends most of its time saying 'buffering'; something I've never experienced with netflix. That's got to save a lot of bandwidth.

  9. Re:Is Netflix by _KiTA_ · · Score: 5, Interesting

    ISPs only have so much capacity to sell though.

    And Netflix is buying what ISPs are selling. And more importantly, Netflix's customers are buying their connections.

    I hear this every so often since I used to work at an ISP. Basically the ISPs are longing for the days where they could sell a grandma a 10 meg connection for $100 a month and watch her use 100kb of bandwidth a day when she checks her email and looks up recipies.

    Granted, we do have a problem with network saturation, where ISPs sell product they do not own, but that's their own fault, not Netflix nor their customers.

  10. Re:Is Netflix by magic+maverick+ · · Score: 5, Insightful

    So they should raise their prices then?! Or maybe put down some more pipes?
    If an ISP has a problem with its customers using bandwidth, they really have three options:
    1) Raise prices per/MB; 2) Get more bandwidth; 3) Get rid of customers who use a lot of bandwidth. It seems that many ISPs want to do only 1 and 3, where the logical thing is to do 2 (because bandwidth usage will only increase in the future, and and ISP that can provide it, will have an edge of those that can't).

    --
    HELP MY ACCOUNT HAS BEEN HACKED BY AN ILLIBERAL ART STUDENT SET TO DESTROY THE INTERWEBZ!
  11. You know... by Anonymous Coward · · Score: 5, Interesting

    I would be more than happy to be able to actually download movies from Netflix during non peak times to watch at some other time. This would allow spreading out the bandwidth over the course of a day instead of everyone streaming at peak times such as 7PM EST,CST,PST

    Streaming services will continue to degrade our bandwidth unless we are given the ability to download movies\shows during off hours to watch later.

    1. Re:You know... by fuzzyfuzzyfungus · · Score: 5, Insightful

      I would be more than happy to be able to actually download movies from Netflix during non peak times to watch at some other time. This would allow spreading out the bandwidth over the course of a day instead of everyone streaming at peak times such as 7PM EST,CST,PST

      Streaming services will continue to degrade our bandwidth unless we are given the ability to download movies\shows during off hours to watch later.

      But that would disrupt the hilarious consensual hallucination among the 'content' people that 'streaming' isn't actually just a form of 'downloading' where you don't bother to write things to the disk! We can't have that!

      It is absolutely necessary that 'streaming' and 'downloading' be fundamentally different, because, um, 'broadcasting' and 'selling VHS tapes' were fundamentally different! That's why! Also, if your video decoder was sold as a 'computer' and connects to an LCD panel that the salesman called a 'monitor', that's entirely different than if your video decoder is called a 'set top box' and is connected to an LCD panel called a 'TV'. Because, because, something.

    2. Re:You know... by mu51c10rd · · Score: 3, Interesting

      What you need is .... TiVo for NetFlix!
      Um...you mean PlayLater?

  12. Re:Is Netflix by Xipher · · Score: 5, Interesting

    Actually Netflix is trying to get past transit ISPs as much as possible via peering. Provide free peering and caching appliances to ISPs, they get their content closer to the customer, and cut down their transit costs.

    --
    I don't know everything.
  13. Re:Is Netflix by lightknight · · Score: 3, Insightful

    It helps if you upgrade your equipment, rather than look for the world's greatest ROI on 10 Mb hubs...

    --
    I am John Hurt.
  14. Re:Still not good enough for me. by edawstwin · · Score: 5, Interesting

    $8 is less than the cost of a matinee movie, and that's too much to pay monthly for potentially thousands of hours of video?

    --
    I don't want to achieve immortality through my work. I want to achieve it by not dying. - Woody Allen
  15. Re:The TV networks have had an awful time adapting by SJHillman · · Score: 5, Funny

    If I've learned anything from Sid Meier, it's that spearmen are damned tough bastards to beat when they want to hold their ground.

  16. Re:Still not good enough for me. by superslacker87 · · Score: 3, Interesting

    I pay for Netflix, Hulu Plus, Amazon Prime, NHL Center Ice, and per episode subscription for the few TV shows that I consider not worth waiting for to have the season released for "free" to the aforementioned services when they are not available on Hulu. I still save more doing it this way than I would spending money for over 1000 channels I have no desire to pay for or watch.

    --
    I run Ubuntu skinned to look like a Mac on a PC. Go figure.
  17. Re:Is Netflix by hedwards · · Score: 3, Insightful

    Precisely, commercial bandwidth is one of the few areas where capitalism seems to be working. The price has come down substantially over the last decade. If they can't afford to provide what Netflix needs, then they should raise the rates and build out the infrastructure.

    Problem solved.

  18. Re:The TV networks have had an awful time adapting by MightyYar · · Score: 3, Informative

    He learned that from the British.

    --
    W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
  19. Re:Is Netflix by nine-times · · Score: 5, Insightful

    I agree. To create an analogous situation with something other than Internet service, imagine Microsoft started going around to every business running Windows/Exchange, saying, "Hey, we deserve some of your profits. You're using our products to make money, and it's totally unfair that we don't get a cut." That'd be ridiculous,right? Microsoft offered a product, and you bought it according to their terms. If you think they deserve a percentage simply because you use their product to make money, then where does it end? Why can't 3M come after you for a percentage because you use post-its.

    Even in talking about Internet service, why aren't ISPs going after every company with a website? I work for a company with a website, and we get business through the internet. We use our Internet connection to conduct our business. Should our ISP be able to come after us for a percentage of profits, just because we make money by using out Internet connection?

    No. We pay for out internet connection. We pay for our hosting. Our customers pay for their internet connections. That's all the ISPs can lay claim to: the charges for providing Internet service.

    Really, the only difference with Netflix is they end up being a competitor to ISPs who also provide Cable service. Well boo-fricking-hoo.

  20. Re:Is Netflix by hoxford · · Score: 3, Informative

    Just like Akamai and others were doing 13 years ago...

  21. When the Stanley Cup finals are blacked out by tepples · · Score: 3, Informative

    I pay for Netflix, Hulu Plus, Amazon Prime, NHL Center Ice

    What do you do for NHL games that are blacked out of NHL Center Ice because they are shown on national or regional cable television? Last year the freaking finals were shown on what is now NBC Sports Network, a cable channel.

  22. Bad codecs by jensend · · Score: 4, Interesting

    If they used modern H.264 and AAC encoders rather than whatever outdated VC.1 and WMA encoders they're using, they could cut that bandwidth use by a third, reducing their costs and improving the customer experience tremendously. Does anybody know why they haven't already done this?

  23. Re:Is Netflix by postbigbang · · Score: 3, Informative

    Which is why distributing through AWS also makes sense. Tumblr and others do the same thing. It's called: most efficient CDN you can construct. And with luck, it will eat Comcast/xFinity's lunch, along with a long list of broadband cable provider's meals. Yes, you still need the last mile. No, you don't need the goofy TV signal infrastructure at 720p on a good day. Free your cable: use all of the bandwidth for packets.

    --
    ---- Teach Peace. It's Cheaper Than War.
  24. Re:Is Netflix by clarkn0va · · Score: 5, Insightful

    I run a small hobby ISP and I can have effectively as much bandwidth as I'm willing to pay for, or rather, as much as my customers are willing to pay for.

    As a somebody selling internet access, I love Netflix and any other online service that give my potential customers a chance to blow through the incumbent telco's artificially low transfer caps (I don't put caps on my service). I can't think of another business where the typical vendor prefers that his customer use less of the product he sells. It makes no sense to me.

    --
    I am literally 3000 tokens away from the chaotic crossbow --Stephen
  25. Re:Still not good enough for me. by Digicrat · · Score: 3, Informative

    I love how the cable companies (ie:Comcast) can call me up offering me a Cable/Internet package for $70/month, only $5 more than what I nominally pay for Internet only ... but flat out refuse to tell me what the actual cost would be after taxes/fees (I was literally told that I should sign up and can cancel it after the first month if I don't like what the taxes are). I'd gladly pay an extra $5-10/mo for full cable TV access ... but in reality it's more like 20-40 after taxes and fees (which largely don't apply to Internet-only service). /rant

    And those are additional reasons why Netflix+Antenna+MythTV > Cable TV

  26. Re:Is Netflix by Synerg1y · · Score: 3

    Really, the only difference with Netflix is they end up being a competitor to ISPs who also provide Cable service. Well boo-fricking-hoo.

    +100 Internets to you good sir.

  27. Re:Still not good enough for me. by Anubis+IV · · Score: 5, Interesting

    I'll readily grant that Netflix, just like pretty much every other service ever created, is not necessarily for everyone. Particularly if you're into sports or want to watch stuff as it comes out, Netflix is probably not for you. But for those of us who prefer to wait until a show is a few seasons in or entirely completed before we even pick it up, Netflix is the best thing since P2P.

    In contrast to cable plan I cut even before I started with Netflix, I now have:
    1) Orders of magnitude more things to watch right now, and more of it in 1080p.
    2) A subscription that costs 25% of what I used to pay ($8 vs. $30).
    3) An ability to watch video while away from home.
    4) No need to purchase/rent a separate device to timeshift or store content.
    5) The ability to watch shows a season at a time without having to store that content or plan doing so in advance.
    6) Recommendations that are actually really good for stuff I haven't seen yet.
    7) No more commercial breaks or wasting time watching intros/credits on TV series.
    8) No hidden fees, great customer service, and no contract.

    Again, it's not for everyone, and for many people the best it can be is a supplementary service that may allow them to reduce the amount they spend elsewhere or else add some extra content that they couldn't get otherwise, but for many people, it can add a LOT of value over what cable has to offer while still being significantly cheaper.

  28. Netflix used 1/3 of Internet's BW on DVD-by-mail by billstewart · · Score: 5, Funny

    Back in the old days, when Netflix worked by mailing physical DVDs, their bandwidth was about 1/3 of the total bandwidth of the Internet. They had a much higher latency (~48 hours), but a huge amount of parallelism and 4GB packet sizes.

    --

    Bill Stewart
    New Fast-Compression-only CPR http://preview.tinyurl.com/dy575ks
  29. TV series episodes on the bus by tepples · · Score: 3, Interesting

    Better idea just upgrade the internet connections.

    Say you want to watch 24-minute episodes of a TV series on your 30-minute-each-way bus commute to and from work. To stream on the bus, you'd need an expensive cellular data plan. And it's expensive because there's a limit to how many cellular subscribers can be served at once.

    I don't want to decide what I am going to watch hours in advance.

    You do if you're watching a whole season of a TV series in order.

    I have no interest in leaving some machine on burning power to record a show for later.

    Even if you have no such interest, millions of pirates using BitTorrent have such interest.

  30. Re:Is Netflix by TWiTfan · · Score: 4, Insightful

    imagine Microsoft started going around to every business running Windows/Exchange, saying, "Hey, we deserve some of your profits. You're using our products to make money, and it's totally unfair that we don't get a cut."

    You don't have to imagine it. Apple does it with iOS every day. You want to put your software on a iPad or iPhone, or make any money off of said app--Apple wants their 30% cut (or hit the road, Jack).

    --
    The cow says "Moo." The dog says "Woof." The Timothy says "Thanks, valued customer. We appreciate your input."
  31. Re:Is Netflix by Anonymous Coward · · Score: 4, Insightful

    Your comment got me thinking, and I came up with one. Insurance. ISP's want to be like insurance companies, collecting money for a service they don't want you to actually use. Unfortunately, they're not providing a service that their customers would rather not have to use.

    I think it's high time to classify ISP's as a utility and be done with it.

  32. Re:Is Netflix by clarkn0va · · Score: 4, Interesting

    I think it's high time to classify ISP's as a utility and be done with it.

    Completely agree

    --
    I am literally 3000 tokens away from the chaotic crossbow --Stephen
  33. Golden Corral by tepples · · Score: 4, Insightful

    I can't think of another business where the typical vendor prefers that his customer use less of the product he sells.

    Golden Corral and other buffet restaurants.

    1. Re:Golden Corral by clarkn0va · · Score: 4, Interesting

      Maybe, but I've never seen a buffet discourage its customers from eating more food. Sometimes they have a sign asking you not to take more than you can eat, or even promising to bill you extra if you do, but large ISPs don't ask you not to waste their product, they simply discourage it across the board.

      I think the buffet comparison is particularly apt. Whenever my customers ask me about transfer caps, I simply ask that they enjoy the bandwidth and do not waste it. I leave it up to them what constitutes judicious use of the resource.

      --
      I am literally 3000 tokens away from the chaotic crossbow --Stephen
  34. Re:Is Netflix by SeaFox · · Score: 4, Informative

    ISPs only have so much capacity to sell though.

    Yes, and like any product when demand exceeds supply you would then invest in your company to increase your ability to fulfill it. It's called "business is going well -- we're expanding".

  35. Re:Is Netflix by SeaFox · · Score: 5, Informative

    imagine Microsoft started going around to every business running Windows/Exchange, saying, "Hey, we deserve some of your profits. You're using our products to make money, and it's totally unfair that we don't get a cut." That'd be ridiculous,right? Microsoft offered a product, and you bought it according to their terms. If you think they deserve a percentage simply because you use their product to make money, then where does it end? Why can't 3M come after you for a percentage because you use post-its.

    Well they did do something analogous to this when they were doing site licensing. I don't know if they still get away with the practice but at one time they charged a per desktop license fee. Not a per installed copy mind you...they quite literally charged per machine on the premises and it did not matter if it was running a MS product or not.

    That's not the same as it only references in-business usage. This would be like Microsoft asking for a percentage of quarterly revenue from your company simply because everyone is using Outlook/Exchange justifying it as the email service helped facilitate business.

    Or how about the Ford company asking a taxi fleet for a cut of the per-mile rate because the vehicles are all Ford made, ignoring that the vehicles were all purchased paid in full by the company already.

  36. Re:Live sports and live political talk shows by Endo13 · · Score: 3, Interesting

    Yeah that's pretty much what I was thinking. Live programming is the only thing keeping cable TV alive. Once that becomes available for streaming online, well, cable (and possibly satellite as well) is done.

    --
    There is no -1 Disagree mod. Slashdot.org/faq defines mod options. USE IT.
  37. Re:Is Netflix by hjf · · Score: 3, Interesting

    Yes but ISPs DO go after business with " You're using our products to make money, and it's totally unfair that we don't get a cut" attitude.
    Case in point: "Business plans" for internet service. I don't know about where you live, but I can tell you: the local telco will not provide "residential" $20/mo DSL service to "commercial" phone lines. They instead "offer" the cheapest $50/mo "business plan" that offers less speed (3mbit vs 6mbit) but includes "up to 10 email addresses, 50MB of web space" while residential service offers only 1 mailbox and no web space. You can't opt not to have the useless 50MB space or the 10 mailboxes with 100MB storage (combined).
    There's also no mention of an SLA, and you're stuck with the same 800-number helpdesk when you run into trouble.

  38. Re:Double entendre by jandrese · · Score: 4, Insightful

    I wish I could convince the two foot guy that scrollbars are a good thing and everybody hates having to slowly slide the stupid lists across the screen.

    --

    I read the internet for the articles.
  39. Re:How many thirds are there? by Macgrrl · · Score: 4, Funny

    Maybe Netflix is spamming us with porn via bit torrent?

    --
    Sara
    Designer, Gamer, Macgrrl in an XP World