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posted by mattie_p on Friday February 21 2014, @12:01AM   Printer-friendly
from the stop-clogging-the-pipes dept.

dave562 writes: "There was an interesting article posted on Zero Hedge lately on the throttling of Netflix.

'For years, the Netflix streaming business has been growing like a parasite, happy to piggyback on established broadband infrastructures, where the broadband companies themselves have becomes competitors to Netflix for both distribution and content. Until now. Emboldened by the recent Net Neutrality ruling, which has put bandwidth hogs like Netflix which at last check was responsible for over 30% of all downstream US internet traffic, broadband providers are finally making their move, and in a preliminary salvo whose ultimate compromise will be NFLX paying lots of money, have started to throttle Netflix traffic. The WSJ reports (Paywall) that the war between the broadband-ers and the video streaming company has finally emerged from the "cold" phase and is fully hot.'"

 
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  • (Score: 5, Interesting) by cybro on Friday February 21 2014, @01:07AM

    by cybro (1144) on Friday February 21 2014, @01:07AM (#3941)

    Hello, I believe that there must be something that I am missing.

    I run several dedicated servers, they cost money every month and that includes a certain bandwidth allocation built into the price. More bandwidth per month costs more money per month.

    I believe the data centers pay large amounts of money to the backbone providers to get multiple unmetered 10gbit links to the internet, which they then oversell to a certain extent to the people like me who hire the dedicated servers, so that bandwidth is fully paid for.

    And then at home I pay my ISP for an internet connection, a cheap connection has say 50gb a month with speed limiting for the rest of the month if you go over. You can upgrade to a business connection where no speed limiting occurs but you get charged something like 20c a gigabyte over the monthly allocation. And for $90 a month I can get a 600gb a month bandwidth allocation, which is my current plan from my ISP.

    So that is fully paid for.

    Where exactly is netflix getting free access? Surely they have to pay someone to get access to the internet at all, unless they themselves are a tier-1 backbone provider?

    Apologies if this is a stupid question but I am certain there must be other people like me who are confused about this.

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  • (Score: 5, Insightful) by WildWombat on Friday February 21 2014, @01:21AM

    by WildWombat (1428) on Friday February 21 2014, @01:21AM (#3949)

    "Where exactly is netflix getting free access? Surely they have to pay someone to get access to the internet at all, unless they themselves are a tier-1 backbone provider?"

    Netflix isn't getting anything for free. They're paying their own way. So are their customers who have already paid for their bandwidth. The problem is that our major ISPs are greedy motherfuckers who almost always have a local monopoly or duopoly and the vast amounts of power that come with that. They're double dipping and trying to get Netflix to pay a second time for Bandwidth that the ISPs customers have already paid for. It should be fucking criminal but when you own as many lawmakers as the major ISPs you get to write the laws....

    Hope that helps clear up any confusion.

    Cheers,
    -WW

    • (Score: 5, Insightful) by dry on Friday February 21 2014, @02:38AM

      by dry (223) on Friday February 21 2014, @02:38AM (#4007) Journal

      You forgot to add that the ISPs have also expanded into content and are directly competing with netflix so naturally want to leverage their monopoly in the ISP business to push their media business.
      At one time there were rules about what a company could own, rules meant to foster competition and somehow we got sold on the idea that no regulations (actually just certain regulations) is better for competition.

      • (Score: 2, Funny) by Anonymous Coward on Friday February 21 2014, @04:28AM

        by Anonymous Coward on Friday February 21 2014, @04:28AM (#4074)

        But the rules are ebil socialism!! How dare you question deregulation. Corporations are model citizens and would never screw consumers over when allowed to self-regulate!