Slashdot Mirror
Netflix CEO On Net Neutrality: Large ISPs Are the Problem
KindMind writes: At Wired, Netflix CEO Reed Hastings has posted his take on net neutrality. He lays the problem at the feet of the large ISPs. Hastings says, "Consider this: A single fiber-optic strand the diameter of a human hair can carry 101.7 terabits of data per second, enough to support nearly every Netflix subscriber watching content in HD at the same time. And while technology has improved and capacity has increased, costs have continued to decline. A few more shelves of equipment might be needed in the buildings that house interconnection points, but broadband itself is as limitless as its uses. We'll never realize broadband's potential if large ISPs erect a pay-to-play system that charges both the sender and receiver for the same content. ... It's worth noting that Netflix connects directly with hundreds of ISPs globally, and 99 percent of those agreements don't involve access fees. It is only a handful of the largest U.S. ISPs, which control the majority of consumer connections, demanding this toll. Why would more profitable, larger companies charge for connections and capacity that smaller companies provide for free? Because they can."
In the absence of governments preventing them quasi-monopolies will act like quasi-monopolies?
"Oh, and it would be nice if the US government would not make it so damned difficult for me to start a proper ISP."
You just mentioned the gun that's being used.
They don't want to pay for bandwidth anymore.
What's so unreasonable about this? Netflix isn't wanting this for free, they are wanting peering agreements.
Basically, they are saying, let us run fiber directly to you so that:
1) Our customers get a faster connection
2) Your customers get a faster connection to us.
3) Your customers are no longer bogging down your internet connection with traffic to us
4) Your customers get a faster connections to the rest of the internet
5) You don't have to buy bigger pipes to the rest of the internet therefore saving money.
etc...
It's a win/win for all involved. There is no reason money needs to be continually exchanged as it's now a private
lan between the two companies and I'm sure Netflix would gladly pay for the hardware.
The only reason they don't want to peer with netflix is because they feel like they own the customers and
are willing to hold their own customers hostage in the hopes that netflix will cave.
Netflix unfortunately is not critical enough to do the opposite. (i.e. peer with us or your customers
can't use netflix) as netflix actually has competition unlike the people they are trying to peer with.