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AT&T Plans To Launch Internet Video Service

Posted by Unknown on from the yet-another-awful-option-no-one-wants dept.

An anonymous reader writes "AT&T officially announced on Tuesday their intention to launch a Netflix-like service in collaboration with an investment group run by a former Fox president. AT&T is following in the footsteps of Verizon, which partnered with Redbox in 2012 to offer the same type of service, and like Verizon, is also still negotiating with Netflix on payments to not throttle Netflix traffic."

2 of 43 comments (clear)

  1. Netflix fucked up when they paid by Karmashock · · Score: 4, Insightful

    What they should have done is informed their users that their ISP is slowing the traffic that they paid for down intentionally in violation of if not the letter of their contracts then at the very least the common understanding and spirit of the contract.

    And if the courts didn't find that behavior to be fraud then the bad marketing and political fallout would do the real work.

    By paying, netflix took all the heat off the ISPs and allowed them to get away with it.

    Netflix... making bad decisions yet again.

    --
    I've decided to stop wasting my time responding to AC trolls/sockpuppets... so if you want a response from me... login.
    1. Re:Netflix fucked up when they paid by alen · · Score: 3, Informative

      AWS is only the authentication part. the content is spread around their leased data centers and colo sites

      i did some googling and since 2008 netflix used contract with limelight for CDN and lots of third party peering services. as well as transit from cogent and L3. problem is they always cut profit thin deals where the value for the provider was mostly learning to deal with the traffic. even limelight said they made almost no profit on the netflix deal.

      instead of paying more in network costs like HBO and everyone else does netflix came out with their own CDN and wanted ISP's to host them for free. unlike the current arrangements where CDN's pay the ISP's for hosting and bandwidth. and netflix started super HD right at the time they screwed up their distribution system and went on their PR parade saying how bad all these ISP's are.

      i don't know what the deal with AT&T and Verizon is but with comcast the difference is netflix is paying comcast directly instead of the other services they used to
      pay. win/win for everyone and cutting out the middlemen

      and if you look at netflix's financials their tech costs are less than 1/10 of revenues and content costs are 3/4 of revenues. their problem is they are just a low margin middle man for content and make very little profit