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Netflix Gets What It Pays For: Comcast Streaming Speeds Skyrocket

jfruh (300774) writes "Back in February, after a lengthy dispute, Netflix agreed to pay Comcast for network access after being dogged by complaints of slow speeds from Comcast subscribers. Two months later, it appears that Comcast has delivered on its promises, jumping up six places in Netflix's ISP speed rankings. The question of whether this is good news for anyone but Comcast is still open."

60 of 328 comments (clear)

  1. Seriously by Anonymous Coward · · Score: 5, Insightful

    Fuck Comcast

    1. Re:Seriously by NotDrWho · · Score: 5, Funny

      I love Comcast. Comcast is awesome. And I don't just say that because they're my only real broadband internet option now, and the only real option now for several cities around me now in fact. I say it because they're great! Doubleplus good they are!

      --
      SJW's don't eliminate discrimination. They just expropriate it for themselves.
    2. Re:Seriously by Narcocide · · Score: 2

      Its really easy to feel this way if its also the only real modern broadband experience you've had and things like throttling content to extort money out of content providers seems like completely acceptable behavior to you.

    3. Re:Seriously by gameboyhippo · · Score: 3, Informative

      I wish I could be so "lucky"... The only choices we have here in KC is AT&T U-Verse, Time Warner, oh and um.... GOOGLE FIBER!!!

    4. Re:Seriously by NotDrWho · · Score: 4, Funny

      Max DSL speed here is 3 mbps, not even fast enough to do HD streaming. Not that I wouldn't use the great Comcast anyway of course! My only real complaint about them is [this post censored for content by Comcast social media decorum services. This is your 2nd strike warning, customer.]

      --
      SJW's don't eliminate discrimination. They just expropriate it for themselves.
    5. Re:Seriously by Jonboy+X · · Score: 4, Insightful

      Fuck Netflix too. We know that telco's are evil. You've just given them a big win, and a taste for blood.

      Thanks for nothing, Netflix. You broke the Internet. We won't forget this.

      --

      "In a 32-bit world, you're a 2-bit user. You've got your own newsgroup, alt.total.loser." -Weird Al
    6. Re:Seriously by Danathar · · Score: 2

      3Mb/s is more than enough to do HD.

  2. I Pay by sycodon · · Score: 5, Funny

    1. I Pay Comcast for internet access at X speed.
    2. I Pay Netflix to send me movies via that line that I pay for.
    3. Comcast holds my content hostage, wanting an extortion payment from NetFlix.

    I see.

    --
    When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
    1. Re:I Pay by 93+Escort+Wagon · · Score: 2

      While I agree with you in principle, it is a little more complicated than that.

      What Netflix is paying for is a peering tie-in inside of Comcast's data centers.

      --
      #DeleteChrome
    2. Re:I Pay by _xeno_ · · Score: 5, Interesting

      Well, not just from Netflix, what they really want is to make the Netflix experience so terrible that you'd rather buy pay-per-view movies from Comcast instead. Barring that, they'll take money from Netflix if they can get that, too.

      Comcast's end game is being your only source of content. Internet, TV, movies, music, phone service, all through Comcast and no one else. If they have to break Netflix and Skype to do that - "oops." After all, net neutrality is currently unenforceable in the United States.

      --
      You are in a maze of twisty little relative jumps, all alike.
    3. Re:I Pay by Anonymous Coward · · Score: 5, Informative

      I've set up a VPS to access netflix through my comcast connection, but it doesn't allow comcast's throttling. My video quality has much improved. This anecdotally proves to me comcast is manipulating netflix's traffic.

    4. Re:I Pay by cheesybagel · · Score: 5, Informative

      This is worse than net neutrality. IMO it violates the Sherman antitrust act.

    5. Re:I Pay by Warbothong · · Score: 5, Informative

      1. You pay Comcast for Internet access at X speed.
      2. Netflix pays Amazon and others for Internet access at Y speed ( http://en.wikipedia.org/wiki/N... )
      3. You pay Netflix to send you movies via those lines that you both pay for.
      4. Comcast holds your content hostage, wanting an extortion payment from NetFlix.

      The point about NetFlix paying for bandwidth is important, since Comcast keep claiming things like "they shouldn't get a free ride" and "somebody needs to pay for the infrastructure", but they *were* paying for infrastructure; just not Comcast's (directly, anyway).

    6. Re:I Pay by firex726 · · Score: 2

      Netflix also offered to set up their server inside the Comcast DC's, that way there would be no peering, it'd be on the Comcast network all the time. Comcast declined.

    7. Re:I Pay by Alternate+Interior · · Score: 5, Informative

      Have a local ISP who pipe through Time Warner. Around the end of December, Netflix connections went to crap. Complained and ISP threw Netflix under the bus, saying they've over-saturated their bandwidth. Tried a SOCKS proxy via VPS and magic, works fine. Told ISP and they seemed genuinely amazed.

      Comcast is still the devil- but VPS is a very viable workaround.

    8. Re:I Pay by Em+Adespoton · · Score: 4, Insightful

      Not to mention the fact that the part of the internet NOT controlled by Comcast didn't have the same issues experienced by Comcast customers -- which shows that the issue was at some level, Comcast's problem. Of course, the real issue was their peering agreement with Cogent (who didn't have such issues with others, but Comcast must have, as it would have only been a few hops to route around the peering issue).

      In other words, Comcast is looking like a gated intranet, and Netflix has now paid for the access keys in a way that ISPs refused to do. I predict that soon you'll see ads saying "blazing fast speeds within the Comcast Network". So much for net neutrality.

    9. Re:I Pay by Anonymous Coward · · Score: 2

      Uh, yeah, that's right... You don't understand. Bandwidth isn't connectivity.

      Everyone (or most people) get the fact that Gigabit ethernet in their house doesn't get them Gigabit feeds from the Internet.

      It's the same on the other end of the line. Links at a certain bandwidth from a Netflix hosting center into Cogent, do not equate to identical upstream bandwith from Cogent to every other network. That's why peering exists: to connect multiple networks together.

      There is no free lunch, and there is no conspiracy. Connect yourself to a network with cheaper upstream connections, you pay less. You want better upstream connections to more backbones? You pay more. It's not rocket surgery.

    10. Re:I Pay by gfxguy · · Score: 3, Interesting

      It's not Neftlix wanting unlimited bandwidth access to Comcast's customers, it's Comcast's customers wanting what they actually paid for already. If Comcast has a problem with me using the service I already pay for to access Netflix, then their problem is with me, not Netflix. I'm the customer. I'm the one paying for bandwidth, and I'm the one choosing to use that bandwidth to access Netflix. I understand they argument they weren't throttling Netflix, that there were other problems, but I would think Comcast would actually want it's customers to be happy... that is, unless they had an effective monopoly on high speed internet service to their customers... which is exactly what they have with the majority of them.

      --
      Stupid sexy Flanders.
    11. Re:I Pay by ArhcAngel · · Score: 2

      Actually business class does have certain guarantees. But consumer class you are absolutely right. Most ISP's oversell what they can accommodate and hope you all never log on at the same time. Since statistically less than 10% ever use the total bandwidth they are allotted it works out most of the time. And when it doesn't those 10% get booted to keep the 90% happy.

      --
      "A person is smart. People are dumb, panicky dangerous animals and you know it." - K
    12. Re:I Pay by Alternate+Interior · · Score: 2

      Sign up for a linux-based VPS. (I use digitalocean. There's lots of options.)

      If you're using OSX or Linux, open terminal and
      ssh -N -D 8080 your.vps.ip.or.domain -f
      (N is for "no command", -D specifies port, 8080 is your port, hostname, and -f keeps it running in background)

      Then in your browser or system, open your proxy configuration and type localhost as the server/host and 8080 as the port. Or whatever number you like. 8080 is just ingrained in my mind.

      If you're using PuTTY and Windows, it'll make you type more. Check http://www.virtualroadside.com... . Use 8080 or whatever when they say "X". Use same number for local and remote port, so that you don't have to remember which is which.

    13. Re:I Pay by BadgerRush · · Score: 2

      They share a network, it is called the Internet. Comcast customers are not paying just for access to Comcast subnet (do they think they are a BBS?), customers are paying to access to the whole Internet at the contracted speed.

      Now, I understand that Comcast cannot be blamed for slow speeds when connecting to a 3rd party if the slowdown, the funnel, is inside the 3rd party network, but that is not the case here. The slowdowns where caused because Comcast failed to contract a fast enough link (or peering agreement) to a specific part of the internet. The funnel was at their network border and consequently their responsability. They failed to provide a service that their customers are paying for.

      If Comcast doesn't have to provide full bandwidth to 3rd party networks then I found a new business model: I'll set-up a small ISP providing gigabit internet for hundreds of customers and then contract a single gigabit link upstream (or even a slower one, maybe a 54kbps dial-up), after all I cannot promise full bandwidth to a 3rd party.

    14. Re:I Pay by sycodon · · Score: 2

      Yeah...I'm not buying that. not questioning you, but I don't buy the cost of bandwidth.

      Most of the developed world gets more for less.

      --
      When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
    15. Re:I Pay by Solandri · · Score: 2

      It would, except Comcast's monopoly is government-granted. A municipal government has decided to make Comcast the sole cable provider in the area, and prohibited other cable companies from offering competing service. The solution isn't to bash Comcast for acting like a monopoly (as much as I'd like to). It's to prohibit municipal governments from granting cable and phone monopolies.

      I think it should be handled the way electricity and gas are handled - the company that owns the infrastructure cannot sell what is transported through those pipes and lines. They can sell service to other companies which provide the content, but they themselves cannot sell content. e.g. The Gas Company owns the gas lines coming to my house, but I can buy my gas from hundreds of companies which sell gas.

      Also note that if there had been competitive cable internet, it would actually be Comcast paying Netflix for better service. If Netflix sucked on Comcast, Comcast's customers would've threatened to jump ship to another cable Internet provider. So to retain customers, Comcast would've been willing to pay Netflix to host their media locally to improve service. The only reason Comcast was able to strongarm Netflix into paying is because they have a monopoly on their customers.

  3. A win? by bazmail · · Score: 4, Insightful

    I hope we at least have water neutrality where we don't get charged more for using water for showering as opposed to washing the car. thats where its all going folks.

  4. If Comcast was honest.... by Lumpy · · Score: 2

    They would have offered to play netflix streaming server mirrors in their regional Headends to give real speed boosts.

    --
    Do not look at laser with remaining good eye.
    1. Re:If Comcast was honest.... by unrtst · · Score: 2

      But how does that get them more money?

      They would have far less traffic transiting other networks, greatly reducing the thing they kept complaining about, which supposedly costs them money, so this would save money there.
      It would also provide a benefit to many of their customers experiences.
      This is all very similar to Akamai and other CDN's. As an ISP, it's a win-win, especially if the provider (netflix/akamai) foots the bill for their hardware.

      Of course, they may be making more cash from this agreement with Netflix... but that's not really a good thing for anyone.

  5. that was quick! by Anonymous Coward · · Score: 5, Insightful

    it's barely been a month & comcast's already completed all those network upgrades? you know, all that capital investment that was required b/c of netflix that they didn't have the $ for until a month ago? that's impressively fast considering how long it takes them to fix the most basic problems for individual customers!

    1. Re:that was quick! by _xeno_ · · Score: 3, Insightful

      it's barely been a month & comcast's already completed all those network upgrades?

      Apparently there were no network upgrades. The Netflix deal sounds like what happened is that Netflix is paying Comcast to allow them to hook up servers directly to Comcast's network instead of having to route in from outside Comcast. Which would explain why it happened within a month, if all Netflix did was set up some new servers inside some Comcast data centers.

      --
      You are in a maze of twisty little relative jumps, all alike.
    2. Re:that was quick! by PortHaven · · Score: 4, Informative

      It happened basically over night.

      It was merely throttling policy.

  6. Consumers pay by pr0nbot · · Score: 5, Insightful

    Obviously Netflix will just pass the cost on to its subscribers (where else would they get the money from?). It's very unlikely they'd implement this as a surcharge for their Comcast subscribers only (I wish they would, but I expect their contract with Comcast prohibits it), they'll just absorb it into the single subscription price. So in fact non-Comcast customers will effectively be indirectly paying Comcast to subsidise other users' access.

    From an engineer's point of view it's all baffling (Netflix and their customers are both paying for a certain amount of bandwidth, so where's the need for anything more?), but when you view it through the lens of capitalist incentives it all makes perfect sense.

    1. Re:Consumers pay by Njovich · · Score: 2

      If Netflix could get away with raising prices without losing too many customers, do you think they wouldn't have done it regardless of this event?

      For 95% of non-commodity products, the only factor in setting a price is what the client is willing to pay for it. Cost has some influence there, but it's not nearly as direct as many people seem to think.

      This will probably just eat into the margins of Netflix.

    2. Re:Consumers pay by cheesybagel · · Score: 2

      If you have negative margins it ceases to be a business. That sounds like a good reason to jack up prices to me.

  7. "The question of whether this is good news..." by Red_Chaos1 · · Score: 5, Informative

    "...for anyone but Comcast is still open."

    It was never a question, nor open. The answer is no. It is painfully obvious this benefits Comcast and hurts everyone else.

  8. Re:huh? by WaywardGeek · · Score: 2

    What about the folks who prefer Hulu? What about the next great Internet service that now can never happen again like it did in the past? Netflix paying Comcast is not just about gaining access to customers. It's about locking out competition.

    --
    Celebrate failure, and then learn from it - Nolan Bushnell
  9. Danegeld by kheldan · · Score: 3, Insightful

    Sums it up nicely.

    --
    Are YOU using the TOOL, or is the TOOL using YOU? Think about it!
  10. comcast vs net neutrality by Anonymous Coward · · Score: 4, Insightful

    This is ground zero for the net neutrality fight. We need strong Net Neutrality to keep this BS from happening. Comcast is gaining a position where it will implicitly own a share of every company delivering service to its customers. The Comcast and TWC merger is going to make things infinitely worse.

  11. No... by PortHaven · · Score: 5, Insightful

    What Netflix is paying for, is a bribery fee so that Comcast quit throttling them. The proof?

    As soon as the agreement was reached, I could finally stream Netflix in 3D. Oh, and we all know they didn't get their peering equipment in within 3 days....

    1. Re:No... by DriveDog · · Score: 2

      Yes. Common Carriers. That's what they are, and how they should be treated. What they're doing, discriminating traffic, is going to get Safe Harbor provisions removed, and they'll have to filter everything. They won't mind that, except they'll be sued for not catching things. Do they care about the long term? Nope, just next quarter's profits.

    2. Re:No... by CanHasDIY · · Score: 3, Funny

      The ONLY way to stop this shit is to label all ISP as common carriers.

      Oh, man... is that really the only way?

      drops torch and pitchfork as he walks away despondently

      --
      An enigma, wrapped in a riddle, shrouded in bacon and cheese
    3. Re:No... by dsginter · · Score: 2

      Replying because I accidentally modded you down instead of up and the toothless hillbillies that made slashdot can't help me fix it.

      --
      More
  12. the pink elephant in the room: capitalism. by nimbius · · Score: 3, Insightful

    Capitalism, american capitalism, basically encourages this twisted practice of squeezing as much cash by hook or by crook out of anyone even remotely related to your service. Looking to companies to solve the problem is like looking at a cigarette lighter to fix your burning house.
    br. America has no recourse for evil companies, in fact it prides itself on this fact.

    --
    Good people go to bed earlier.
  13. AT&T also sucks by Bruinwar · · Score: 2

    So Netflix ponies up the money & Comcrap is able to provide no-stutter streaming. It appears to be true. At my girlfriend's place (Comcrap) we couldn't watch Netflix but now it runs fine. At my house (Uverse... Uvile?) we could watch Netflix but now, as in the last two nights, it stutters & is unwatchable. Purely anecdotal but yea, they both suck. Maybe I change providers again... back to Wide Open West!!

    --
    SLOWER TRAFFIC KEEP RIGHT
  14. VERIZON! by itsenrique · · Score: 3, Interesting

    I'm in Tampa, and my service for Netflix has gone down slowly but surely for many months. At this point during peak access it shows me video that looks akin to 240p YouTube clips. Fingers crossed that these clowns overstep their bounds and force some net neutrality legislation.

    1. Re:VERIZON! by itsenrique · · Score: 2

      "In physics, a quantum (plural: quanta) is the minimum amount of any physical entity involved in an interaction." From Wikipedia. So yeah I suppose they are selling a so called infrastructure that they have done the absolute minimum too.

  15. Re:huh? by Chas · · Score: 4, Interesting

    One. Nobody "prefers Hulu". Except the people who implemented it but don't actually USE it.

    Look at Hulu. It's a mediocre streaming site with ever larger chunks of intrusive video ads. And paying them doesn't make the damn things go away or space them out further or make them shorter ads. That's how the entertainment industry would LIKE people to consume their media. Paying them directly, then supporting them indirectly through ad revenue as well.

    NO THANK YOU!

    I mostly agree with your sentiments about it being bad that Comcast got paid for content their users REQUESTED and were already paying them to deliver.

    Not entirely sure about lock-out though.

    --


    Chas - The one, the only.
    THANK GOD!!!
  16. Re:Whatever you're smoking... by Anonymous Coward · · Score: 5, Funny

    We don't know what NotDrWho meant to post. His access to Slashdot is through Comcast.

  17. Re:huh? by DrGamez · · Score: 4, Insightful

    The ads, or how bad Hulu is, is completely unrelated to the topic WaywardGeek was bringing up.

    I assume they meant to ask, what happens with Netflix 2, when there is some new streaming service that's even BETTER than Netflix in every way. Will they also have to go through the same growing pains, eventually forking over cash to get access to the "full internet"?

  18. Net Neutrality Now by prefec2 · · Score: 3, Insightful

    If you have a company and pay for Internet connectivity, then you already paying what is necessary for that volume of data. The speed should be the same for everyone. Otherwise new businesses cannot form on the net on equal terms. This is important for freedom and even for the market economy. However, without net neutrality will end up in a time of monopoly (or oligopoly). Only this time the monopoly is not governed by the state and at least in theory controlled by the public.

    For the US, dropping net neutrality makes sense from a corporate state viewpoint, as all big Internet services are US-based (beside those in China). If you hinder any other new service you can guarantee that those corporations stay in business, because the ramp up cost for new players would be too high. Also peer-to-peer technologies which could flourish with IPv6 can be crippled right before they become dangerous for the establishment.

  19. It would be a shame... by wiredlogic · · Score: 4, Funny

    It would be a shame if ... something ... happened to that nice video streaming business you got there.

    --
    I am becoming gerund, destroyer of verbs.
  20. Netflix doing this on purpose by Anonymous Coward · · Score: 5, Insightful

    I'm beginning to wonder if Netflix did this on purpose, to gain sympathy and to highlight the actual problems around net-neutrality.

    It makes sense, instead of making bold claims about what might happen, they went ahead and just let it happen..

    It's sort of like a person going into a bad neighborhood, getting roughed up and then telling everyone about how much of a bad part of town that was, look he's even a victim!

    This chart is easy to show to politicians and policymakers, and it exposes the simple fact that Comcast clearly **had** the capacity before these payments, they were just withholding.

    Personally, I think it's a very smart move on Netflix's part, they are playing the long game.

  21. Re:So Netflix wants to change how it connects by Arker · · Score: 4, Informative

    You have basically everything backwards here.

    Netflix is not the comcast customer. Netflix pays their own ISP for their bandwidth already.

    It's not Netflix which is using all this bandwidth on comcasts network - it's comcast customers who are using it. And they already paid for it.

    Comcast wants to bill twice. I am sure they would bill 20 times if they could get away with it.

    And they are the 800lb gorilla with an effective monopoly position in many markets and no scruples whatsoever. Netflix folded to extortion, and the precedent is certainly not one that will benefit any users, unless it's the users that are also comcast stock owners.

    --
    =-=-=-=-=-=-=-=-=-=-=-=-=-=-
    Friends don't let friends enable ecmascript.
  22. Re:huh? by CanHasDIY · · Score: 2

    That's how the entertainment industry would LIKE people to consume their media. Paying them directly, then supporting them indirectly through ad revenue as well.

    So, in other words, exactly like a cable subscription.

    --
    An enigma, wrapped in a riddle, shrouded in bacon and cheese
  23. Re:huh? by Tokolosh · · Score: 2

    Once upon a time, cable TV did not have ads, either. One day we will look back fondly at a Netflix (subsidiary of Comcast) without ads.

    --
    Prove anything by multiplying Huge Number times Tiny Number
  24. Re:huh? by Chas · · Score: 4, Informative

    No, what you're seeing is fewer ads, but longer overall.

    Take an Agents of S.H.I.E.L.D. episode.

    43 minutes of show.
    Plus 6 (count 'em) 2-3 minute commercial breaks when you see four ads back to back.

    Granted, that's only about 28% (when TV is 36%). Still, for someone paying the monthly fee, that's ridiculous.

    --


    Chas - The one, the only.
    THANK GOD!!!
  25. Re:huh? by KhabaLox · · Score: 2

    > watch a few hours of commercials every week, and maybe a few hours of actual show.

    If you're ratio of commercial:content on basic cable is anywhere close to 1:1, then you're doing it wrong. Even if you don't use a DVR, the actual ratio on the vast majority of networks is 1:2, or about 18-20 minutes of ads and 40-42 minutes of show every hour.

    > Every single time I surf the menu and see something that looks appealing, and change the channel, it's right to 5 minutes of commercials.

    That's because you surf away from channel A during the commercials, so of course there are going to be commercials on the other channel. The breaks are all coordinated. It's the same with terrestrial radio. Occasionally there is a network that offsets it's programming by 5 minutes (I think TBS did this for a long time), but those usually don't last long, and revert to the standard of starting on the hour with breaks on the 10s.

    --
    Ceci n'est pas un sig.
  26. Re:huh? by Chas · · Score: 2

    The thing is, I don't give a crap how much it costs to support streaming.
    If you want to give it away, ad-supported, for "free"? Cool!

    But if I'm going to pay a subscription fee, I'll be damned if I'm going to put up with ads on top of that. And if the sub price doesn't cover what it'd cost to go ad-free, then they need to rethink their pricing and delivery scheme.

    In short "I don't want to see ads. PERIOD!"

    --


    Chas - The one, the only.
    THANK GOD!!!
  27. Re:huh? by Somebody+Is+Using+My · · Score: 3, Insightful

    It's worse, to some degree.

    With cable TV, the providers only have limited information about who is watching. With streaming video, they can gather much more demographic information, which they can either use themselves or resell to "business partners". It's yet another form of income for them. So Hulu (and similar services) are triple-dipping; they charge the viewer cash for the privilege of watching, then get paid for the adverts, then resell the collected demographics. The viewer pays in money, time, and privacy.

  28. Misunderstanding Peering Agreements by Kamiza+Ikioi · · Score: 2

    We won't forget this.

    Haha, that's what everyone said about the separating of DVD and streaming services, which was an effective price hike.

    But in all seriousness, there was nothing special about the deal, it was a peering agreement, which is STANDARD procedure for EVERYONE. This has absolutely NOTHING to do with Net Neutrality. Anyone who says otherwise has no idea how the system works and has worked since the Internet originally went commercial. Not... One... Clue... This is how the Internet as most everyone knows it has always, always, worked.

    For those who can't grasp this concept, here's an easy reference article: http://blog.streamingmedia.com...

    --
    I8-D
    1. Re:Misunderstanding Peering Agreements by UdoKeir · · Score: 3

      Umm, I pay Comcast to delivery content to me. If I want to stream video from a content provider, that's my decision. I make the request, not the content provider. The request for data is coming from Comcast's customer, not the content provider.

      If Comcast is losing money because of the requests that I make, then they need to change their pricing structure with me, not blackmail the content provider.

  29. A Poo Pile by any other name will smell as 'sweet' by darkonc · · Score: 2

    What Netflix is paying for is "a peering tie-in inside of Comcast's data centers".

    You can call 'protection money' whatever you want. It's still Extortion.

    --
    Sometimes boldness is in fashion. Sometimes only the brave will be bold.