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Netflix Trash-Talks Verizon's Network; Verizon Threatens To Sue

jfruh (300774) writes "If you're a Verizon broadband customer and you've tried streaming Netflix over the past few days, you might've seen a message telling you that the "Verizon network is crowded" and that your stream is being modified as a result. Verizon isn't taking this lying down, saying that there's no proof Verizon is responsible for Netflix's issues, and is threatening to sue over the warnings."

45 of 364 comments (clear)

  1. Price Wars by imunfair · · Score: 5, Insightful

    Since Netflix already paid off Comcast I'd wager they're willing to do the same for Verizon. However, Verizon is probably trying to bleed them for more than they're willing to pay. In other words, this is just their way of negotiating the contract down to a "reasonable" amount. (as if they should even have to make payoffs to the cable companies in the first place)

    1. Re:Price Wars by Austerity+Empowers · · Score: 5, Insightful

      This is why you don't negotiate with terrorists.

    2. Re:Price Wars by pixelpusher220 · · Score: 5, Informative

      They already HAS paid Verizon for better service...and Verizon STILL isn't providing it...

      --
      People in cars cause accidents....accidents in cars cause people :-D
    3. Re:Price Wars by Curunir_wolf · · Score: 4, Informative

      They already HAS paid Verizon for better service...and Verizon STILL isn't providing it...

      No, not for "better service", they paid for an interconnect. That's it. It means that instead of streaming traversing from Netflix -> 3rd party backbone provider -> Verizon, it now goes directly from Netflix -> Verizon. So Verizon is correct - they are providing a connection from Netflix at the data rate specified in the agreement. Those messages may be the interconnect is actually too small (because Netflix undersized it), or something between the user's device and Verizon's network. Sure, it could be a crowded Verizon network, but claiming it's THE cause is speculation, and claiming that there is something Verizon isn't providing is completely wrong.

      --
      "Somebody has to do something. It's just incredibly pathetic it has to be us."
      --- Jerry Garcia
    4. Re:Price Wars by Man+On+Pink+Corner · · Score: 3, Insightful

      It is always a temptation to an armed and agile nation
          To call upon a neighbour and to say: --
      "We invaded you last night--we are quite prepared to fight,
          Unless you pay us cash to go away."

      And that is called asking for Dane-geld,
          And the people who ask it explain
      That you've only to pay 'em the Dane-geld
          And then you'll get rid of the Dane!

      It is always a temptation for a rich and lazy nation,
          To puff and look important and to say: --
      "Though we know we should defeat you, we have not the time to meet you.
          We will therefore pay you cash to go away."

      And that is called paying the Dane-geld;
          But we've proved it again and again,
      That if once you have paid him the Dane-geld
          You never get rid of the Dane.

      It is wrong to put temptation in the path of any nation,
          For fear they should succumb and go astray;
      So when you are requested to pay up or be molested,
          You will find it better policy to say: --

      "We never pay any-one Dane-geld,
          No matter how trifling the cost;
      For the end of that game is oppression and shame,
          And the nation that pays it is lost!"

  2. Redbox Instant by corychristison · · Score: 5, Interesting

    Considering Verizon owns(?) Redbox Instant, why wouldn't they throttle Netflix?

    1. Re:Redbox Instant by Anonymous Coward · · Score: 4, Funny

      Who actually uses Redbox Instant? Sorta kinda seriously asking.

    2. Re:Redbox Instant by jetkust · · Score: 4, Funny

      They are expecting their first customer sometime in 2020.

    3. Re:Redbox Instant by aaarrrgggh · · Score: 3, Insightful

      Because that would be abuse of monopoly, and they take that stuff seriously!

      The current situation is unacceptable, and it makes me want to dump both Verizon and Netflix. There are alternatives for both.

    4. Re:Redbox Instant by Wycliffe · · Score: 4, Informative

      Who actually uses Redbox Instant? Sorta kinda seriously asking.

      It's a pretty good deal for someone who mostly uses redbox and occasionally wants to stream.
      It's $8 a month and gives you 4 rentals so comes out to $2-$3 per month for the streaming portion.
      It's a way for redbox to lock in some customers and a way for verizon to test out it's own streaming service.

    5. Re:Redbox Instant by pixelpusher220 · · Score: 3, Interesting

      Verizon is playing favorites, Netflix is simply calling them out on it...how exactly is this a 'bad' attribute of Netflix? Hell Netflix has already paid Verizon for better access, and apparently Verizon still isn't providing it.

      --
      People in cars cause accidents....accidents in cars cause people :-D
    6. Re:Redbox Instant by Chalnoth · · Score: 4, Insightful

      They don't actually need to throttle anything. They just have to fail to build the infrastructure required to support the bandwidth needs of their customers from a Netflix source. Basically, as video streaming has increased, it's created bottlenecks in existing internet infrastructure. If they don't keep up with the new bandwidth demands, they can't deliver the content.

      Video streaming providers like YouTube and Netflix have been colocating cache servers at ISP's for a while now. These cache servers are actually cheaper for everybody: they're cheaper for the ISP because they don't need to build out as much new upstream bandwidth to keep their service going. They're cheaper for the content provider because the content provider doesn't get as many hits on its datacenters. And everybody else in between has a less-congested network.

      So really it's a matter of ISP's like Verizon and Comcast refusing to allow Netflix/YouTube to build cache servers at the ISP's sites, despite the clear benefits to everybody.

    7. Re:Redbox Instant by JMJimmy · · Score: 5, Informative

      Netflix has already issued a clarification. http://www.dslreports.com/show...

    8. Re:Redbox Instant by JWW · · Score: 4, Informative

      I refuse to criticize Netflix for standing up to the ISP extortionists.

    9. Re:Redbox Instant by brxndxn · · Score: 5, Informative

      I have Fios and I called about Netflix and Youtube issues. The customer service rep actually told me I should use Redbox Instant instead. I ended up saving the chat log because I was so incensed. I paid for the packets of data I request on the Internet. Verizon is trying to charge twice for those very same packets. The only reason I have Verizon is because it's one of two horrible choices I have for Internet access.

      Further, I went ahead and flashed an old wireless access point to DD-WRT and set up an account with hidemyass.com (VPN provider) to see if that helped Netflix and Youtube. Sure enough, it did. Netflix was in HD every time after that and Youtube almost never had a hiccup or buffering issue in the middle of the video - as long as the traffic through the device was going to the VPN.

      Netflix, please keep talking trash. Verizon, please go to hell.

      --
      --- We need more Ron Paul!
    10. Re:Redbox Instant by JWW · · Score: 4, Insightful

      The irony here is that Version will claim no one is paying them to expand their capacity to deal with the Netflix traffic.

      But then there customers should be able to ask and sue for an answer to the question: "If you don't have enough bandwidth to handle sending us data from Netflix, did you lie when you told us you were selling us X amount of bandwidth?"

    11. Re:Redbox Instant by Hodr · · Score: 4, Interesting

      I think you need to learn how routing protocols work. I will give you a hint, unless they are using 20+ year old protocols like RIP v1, it isn't shortest path that defines your route. Their network should route around congestion automatically (the VPN proves there is a less congested route), and the fact that it does not means that they are overriding the default behavior to send Netflix/Youtube/Whatever traffic to specific choke points.

    12. Re:Redbox Instant by Anonymous Coward · · Score: 5, Informative

      You should submit that log to the FCC discussion as evidence of how poorly the market acts without Net Neutrality.

    13. Re:Redbox Instant by brxndxn · · Score: 4, Interesting

      I am so sick of seeing this damn argument.. The bottom line is Verizon is slowing down and dropping packets that go to specific areas. It does not matter how they do it or what they are saying to justify it. It is intentional and they are lying when they're saying it's not. The fix, for a network provider, is simple and low cost - and it should be part of maintaining the network.

      Verizon wants more money to fix their own network problems that they created intentionally because it allows them to extort money from their competition. Also, Verizon is lobbying to further legalize what they are doing since it is a fairly grey area right now. So.. they are both lobbying for the right to slow down competitor traffic and they are claiming that the existing slow-downs in competitor traffic are a 'technical issue' that is not their fault when they are in full control of the means to fix the technical issue.

      --
      --- We need more Ron Paul!
    14. Re:Redbox Instant by sjames · · Score: 3, Interesting

      But since the route still has to get through peering w/ Verizon, it lends some credence to the suggestion that Verizon is selectively oversubscribing the peering points. Normally, traversing a VPN would be expected to damage connectivity.

      Verizon isn't lying in the same sense as a used car salesman isn't lying.

    15. Re:Redbox Instant by TangoMargarine · · Score: 5, Insightful

      Um, isn't Netflix pretty specifically the only major provider that ISN'T owned/run by the Big X? Which is why the ISPs who are owned by the same/similar people are trying to shut them down so hard?

      --
      Unity? Screw that: XFCE. Slashdot Beta? Screw that: SoylentNews. Australis? Screw that: Pale Moon. UX developers DIAF
  3. I can't hear Verizon... by magsol · · Score: 4, Funny

    ...over the sound of all its whining.

    --
    "I'd just like to emphasise that taking a million years isn't a metaphor here..." -Rich Bradshaw
  4. Detect this sarcasm by TheSpinningBrain · · Score: 5, Informative

    Right. Verizon isn't artificially limiting network speeds. Just like Comcast wasn't.

    1. Re:Detect this sarcasm by Ecuador · · Score: 3, Interesting

      Ok, so there are no rules in place that would make Comcast enforce net neutrality. But I don't understand, why wouldn't their customers have a good class-action case against them? I mean, I am paying a (decent in the case of Comcast customers) monthly service fee and I have a reasonable expectation of being able to access whatever I want at a reasonable speed. Why aren't Comcast/Verizon customers recruited for a good ol' class action, since they are essentially paying a monthly fee just to be added to the pool of Comcast/Verizon customers that those companies can "dangle" in front of the likes of Netflix in order to extract more fees. I am not in the US right now, but when I had a TWC (=another crap ISP) contract, it didn't say that TWC could decide what I could download at slow or fast speeds - is that no longer the case?

      --
      Violence is the last refuge of the incompetent. Polar Scope Align for iOS
  5. Re:No proof? by Anonymous Coward · · Score: 5, Informative

    Easy to prove. Use a proxy, ssh tunnel, or VPN outside of Verizon's network, then access Netflix and compare it to not using one of those.

  6. Never going to happen. by Anonymous Coward · · Score: 3, Insightful

    Haha this suit is never coming, they sure as hell don't want to be in a courtroom over this topic too much risk in having netflix expose them and others.

  7. Re:No proof? by Anonymous Coward · · Score: 4, Interesting

    Not really. That tells you that all of the providers between Google and Netflix aren't congested. But the equation doesn't contain just two variables. In the case of Verizon specifically it contains three. Netflix hired Cogent to carry the content and Cogent peers with Verizon. Cogent underbid everyone else because they refuse to pay peering overages, which obviously something like Netflix would cause. Verizon is capping the connectivity between themselves and Cogent at the threshold ratio at which Cogent has been willing to pay.

    This is not the first time that Cogent has been in this situation. Of the 13 examples of "de-peering" instances listed on Wikipedia Cogent is listed 6 times. Netflix went with the low bid fully knowing what they were getting into. Netflix could opt to pay for the ratio difference themselves, like they are with Comcast.

    Now I am both a FiOS customer (not employee) and a Netflix customer. I tried, unsuccessfully, to watch several shows over the weekend. It does piss me off something fierce, but my anger is directed at both Netflix and Verizon as they both just bitch and moan rather than trying to solve the issue for their customers.

  8. Don't give in Netflix! by Anonymous Coward · · Score: 5, Interesting

    I can completely confirm Netflix''s claims. In the last month streaming over FIOS has become unbearable. Last week I couldn't take it and ordered Optimum. Streaming is back to normal and even latency and bandwidth to other services has improved. If you can, dump this bloated monopoly known as Verizon. Why did we break up AT&T to just to create a new monopoly 30 years later?

  9. solutiuon to non net neutrality.. by greywire · · Score: 4, Insightful

    Well this seems like a fine "solution" to companies that are trying to get rid of net neutrality.

    What if every big content provider started popping up such messages? Let the user know directly that their content is being delivered slower because their net provider is throttling the data.

    As long as the content provider can accurately determine this is happening, then what can anybody do to stop them from saying it? Verizon can huff and puff about it but if its provably true can they legally do anything to stop it?

    I bet people start caring about net neutrality real fast..

    --
    -- Senior Software Engineer, Attorney appearance services, locallawyerapp.com.
  10. Re:I want to see where this goes by JeffOwl · · Score: 3, Insightful

    I think what Verizon is saying is that instead of Netflix paying Verizon for a direct link between the Verizon (tier 1) network and the Netflix servers, Netflix is using a different Tier 1 provider which probably has a peering agreement with Verizon and therefore Verizon isn't making any money off the supply side, only the consumer side, which just isn't good enough for them.

  11. Re:We are being bred for slavery by LordLimecat · · Score: 3, Interesting

    Wrong.
    Just a sample of median income over time,, race, etc (in 2004 dollars) (source):

    1950 -- White men: $18000; White women: $ 7000; Black men: $ 9775; Black women: $ 3150
    1980 -- White men: $28939; White women: $10741; Black men: $17390; Black women: $ 9944
    2004 -- White men: $31335; White women: $17648; Black men: $22740; Black women: $18379

    Not only has (inflation adjusted) median-- not mean! -- income risen, it looks to my casual eye like the disparity has massively dropped. It went from a 3:1 ratio for black men to women to 1.25:1; between blacks and whites it went from ~2:1 to ~1.5:1.

    If you were to look at education over the past 100 years you would see the same trend. Im not sure where people are getting these "facts" about the dismantled middle class but theyre terribly wrong. All of this talk about class warfare can only be made by one completely oblivious to reality and history.

  12. Why Netflix caved.. by PortHaven · · Score: 3, Interesting

    Because now that they have paid Comcast. Netflix has the potential to claim actual financial damages, allowing them to bring a case all the up to the Supreme Court.

  13. Re:I want to see where this goes by Charliemopps · · Score: 5, Informative

    It's more complicated than that. Netflix's speeds on Verizon, or any other carriers, network are determined by peering agreements. There are multiple "Tier1" providers out there... these are the networks that interconnect all the ISPs. Random example: Level3

    So you could have a 10gig agreement with AT&T and a 5gig agreement with Level3 and be doing fine. 30% of all peak traffic comes from Netflix. But Netflix has their peering agreement with AT&T so you're all good. Then, suddenly, Netflix switches peering hosts and goes to Level3.

    In most cases the content provider would inform you ahead of time. You make peering agreements in concert with each other. "We'll both sign a peering agreement with AT&T for a period of 2 years" The big change with Netflix is they do not make agreements like this. They switch peers without notice.

    So when Netflix switches peers they leave the ISP with a 10gig trunk to AT&T that's now severely underutilized. The ISP is reluctant to sign with Level3 because who says Netflix wont just switch peers again? The Tier1 providers are aware of this situation and are using it to their advantage. Particularly Level3. We've no idea what's going on here, but I wouldn't be surprised if Netflix is just as much to blaim her as Verizon.

    Netflix has no financial incentive to be friendly with the ISPs and that's what this whole "Fast lane" is about. I don't like the plan but the ISPs concerns aren't just made up. There is a real and legitimate problem with Netflix and it's not just some conspiracy to prevent people from watching movies.

  14. Re:I want to see where this goes by ArhcAngel · · Score: 4, Informative

    If Verizon wanted to offer the best experience to their Netflix subscribing users they would allow Netflix to install a streaming server in their server farm. This would save Verizon money and prevent the throttling that happens at the peer junction.

    To illustrate imagine 40% of Verizon ISP customers are streaming a movie from Netflix. Without the streaming server the entire 40% have to traverse the backbone which Verizon pays a tier A provider like Level 3 for. Now Verizon, like most USA ISPs oversells the capacity they can accommodate because they don't expect everybody to use their full bandwidth portion simultaneously so to save money they also under purchase back end peering connections so that 40% of traffic just slammed all the connection going from Verizon to their tier A provider slowing traffic for everyone trying to access a connection not on Verizon's network. If you add the streaming server inside Verizon's network that 40% of traffic never leaves Verizon's infrastructure thus negating the need to upgrade their back end connection to accommodate the load. Netflix simply sends any new content to the streaming server when it becomes available. Now this scenario SAVES Verizon/Comcast/etc. money but they insist Netflix pay for the privilege of putting the server inside their network. The only reason they would pass up the opportunity to save money is if they also had a streaming service that competes with Netflix which could potentially make them more than they would save. VOD (Video on Demand) and RedBox Instant are just such services. This is why ISPs should not be content providers.

    --
    "A person is smart. People are dumb, panicky dangerous animals and you know it." - K
  15. Re:I have both by bleh-of-the-huns · · Score: 4, Interesting

    I disagree, I do have FIOS, and I get shitty quality streaming for Netflix, HD streams keep buffering or falling back to SD quality.

    When I change my fios gateway VPN connection to force all traffic over my VPS, suddenly everything works just peachy (except my xbox live since I do not run miniupnpd on my vpn gateway).

    I have a perpetual VPN connection open, that only routes traffic to certain countries through my VPN, all other traffic defaults through my verizon connection (unless I change the config and disable split tunneling)

    --
    I came, I conquered, I coredumped
  16. Re:TOECDN solves mostly all of your problems by ArhcAngel · · Score: 5, Insightful

    Netflix offers caching but Comcast/Verizon demand they pay for it despite the money they would save by hosting the cache. They're more interested in poaching Netflix's customers for their own streaming alternatives. This is what happens when Net Neutrality is not mandated.

    --
    "A person is smart. People are dumb, panicky dangerous animals and you know it." - K
  17. Re:We are being bred for slavery by Anonymous Coward · · Score: 3, Informative

    You missed the "in 2004 dollars" part of the GPs post. In 1950s dollars, median income was below $5000.

    Now, with income disparity increasing the middle class may well feel like they're worse off, but they really aren't. They are, however, relatively further behind the wealthiest.

  18. Re:No proof? by Bengie · · Score: 5, Interesting

    Netflix stated that they had to hire Cogent because Verizon refused to accept Netflix traffic from any other CDN. Netflix stated that they were willing to pay the higher price of Level 3, but Verizon wouldn't accept it.

    Maybe Verizon knew that Cogent was bad and wanted to try to cause Netflix into a "guilt by association" situation. Or maybe Verizon finds it easier to flex against Cogent than Level 3, who is many times larger than Verizon when it comes to transit.

  19. Re:We are being bred for slavery by Rockoon · · Score: 3, Informative

    $18k was middle class black in 1950, but once you adjust for inflation, that means in 2004, they should be making about $54k assuming a low 2% inflation,

    Is your bias so thick that you didnt even bother to see if the number was already inflation adjusted? ..or are you so uneducated that you think $18K was a middle class income in the 1950's? Which is it? Disingenuous bias or tragic ignorance?

    The unadjusted figure for white males for the 1950's is $2,709

    ..but here you are, claiming that it was $18K before adjusting for inflation... disingenuous? ignorance? both?

    There is a reason that "the right" is doing better financially, and its not because they are holding you down. You are holding yourself down by not giving a fuck about things like facts.

    --
    "His name was James Damore."
  20. Re:I have both by unrtst · · Score: 4, Informative

    except DSL has always been a shitty tech

    ... the tech isn't shitty, it just has limitations.

    you have to be within range of the CO, have newer wiring, and the farther out you go the slower the speeds
    they will advertise a max speed like LTE, which you will never see because of old and crappy wiring and people "far away" from the CO because the wiring twists and turns underground

    While that's all true, it's also just the last mile, and it is easily and clearly testable**. This means you should be able to determine the speed of your connection from you to the CO (with the ISP's assistance), and it's not going to change based on congestion or time of day (though you could have a crappy copper line that is affected by water damage or other environmental factors... but not congestion).

    What this means is that it's actually much more clear cut when there is an issue, as compared to something like cable (a shared medium). If your speeds over DSL vary depending on time of day (ex. congestion), then it's the network's fault, not your line, and it's most likely due to over subscribing the connection from the CO to ISP (after that, it's the same network that FiOS/etc uses).

    ** I have no idea if they actually disclose the line speed at signup, nor do I know if it's easy for a user to get a test scheduled, and I suspect it is an ugly mess of customer service reps to jump through, but it is technically very easy.

  21. Re:I want to see where this goes by Bengie · · Score: 3, Interesting

    So you could have a 10gig agreement with AT&T and a 5gig agreement with Level3 and be doing fine. 30% of all peak traffic comes from Netflix. But Netflix has their peering agreement with AT&T so you're all good. Then, suddenly, Netflix switches peering hosts and goes to Level3.

    Level 3 has stated that this is common issue across the entire Internet, which is why Level 3 has an average peak port utilization of 37%. Level 3 has designed their network to handle large shifts. You can pay Level 3 to handle peering for you or you can do it yourself, but don't come crying when someone changes routes.

  22. Re: We are being bred for slavery by Dishevel · · Score: 3, Insightful

    They are being enslaved willingly. So I do not care for them at all. If people want to give up their freedoms so they can be lazy and feels safe then fine. I just want these lazy pussies to stop trying to give away my freedoms and responsibilities.

    --
    Why is it so hard to only have politicians for a few years, then have them go away?
  23. Simple solution by Charcharodon · · Score: 5, Insightful
    The solution is Netflix and everyone else needs to let you buffer based on your available bandwidth. If your connection is too slow to watch the HD movie you have paid for then it should pretty much download the whole thing and then let you watch it.

    The whole concept of live streaming accross the internet has always been a stupid idea for pre-recorded non-live media consumption

  24. WTH are Verizon customers paying for? by mosb1000 · · Score: 4, Interesting

    The problem is the way they do their accounting, people pay a monthly rate no matter what, and every bit they deliver is written down as an expense. Verizon doesn't feel they are obligated to actually provide the service their customers are paying for. I'm not even sure what they think their customers are paying for. They will readily admit that 30% of their peak traffic is Netflix, but somehow it never occurred to them that some customers might be paying them $120/month so they can have access to Netflix. Also, if Netflix can deliver this service $8/month (most of which is spent buying content), it's hard to believe Verizon can't keep up with them for 15 times that amount! In reality, there's a bunch of shady nonsense going on here.

    If Verizon doesn't like government regulations, they probably shouldn't be such total assholes to their customers. You'd think that the geniuses running that company would have the foresight to realize their monopoly is only secure as long as their customers are happy, but instead they are pulling this crap.

    If you prefer a free market solution, we could pass a law requiring ISPs to charge per GB delivered. Then they'd get the message that their customers are paying for data, not whatever the fuck Verizon thinks they're providing. But either way, Verizon is totally in the wrong here.

  25. Re: We are being bred for slavery by Cro+Magnon · · Score: 3, Insightful

    It seems to me that the luxuries are cheaper, but the necessities are more expensive. My TV, computer, and other toys might be less, but my gas, groceries, medical care, and housing are going up like rockets.

    --
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