Netflix: We Had to Pay Comcast Because We Were Losing Customers For months now Netflix has claimed that the largest ISPs have intentionally let their peering points get congested so that Netflix would be forced to pay them for direct interconnection (an argument companies like Level 3 and Cogent support). So why is Netflix paying AT&T, Time Warner Cable, Verizon and Comcast for these links if they feel they're being railroaded? According to Netflix quote: “For many [Comcast] subscribers, the bitrate was so poor that Netflix’s streaming video service became unusable,” he writes, then notes that Comcast reps eventually told subscribers to take their beef to Netflix. “Those customers complained to Netflix and some of them canceled their Netflix subscription on the spot, citing the unacceptable quality of Netflix’s video streams and Netflix’s inability to do anything to change the situation." You'll recall that when Netflix started giving impacted customers warning message blaming ISPs, Verizon rather quickly they were the ones losing customers over the fracas. The FCC According to Netflix filings made with the government (hat tip to Quartz and ReCode ), the company was beginning to lose customers who were told by Comcast Netflix was responsible for the problems:You'll recall that when Netflix started giving impacted customers warning message blaming ISPs, Verizon rather quickly threatened to file a lawsuit , insistingwere the ones losing customers over the fracas. The FCC launched an investigation into whether incumbent ISPs were acting anti-competitively back in June.







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Most recommended from 132 comments

jorcmg

join:2002-10-24

USA 2 recommendations jorcmg Member special handling required I dont use netflix. If there are network upgrades needed to handle the asymmetrical internet load from netflix then let netflix and their customers bear the brunt of those costs.

Torts

@73.160.110.x 2 recommendations Torts Anon Netflix should quit whining and sue if they felt wronged Netflix never proved that ISPs slowed down their traffic. All they could prove was that interconnections between transit providers and ISPs used by Netflix were clogged and that traffic slowed.



Who clogged them? ISPs blamed transit providers( who were demanding settlement free peering) who refused to negotiate prices for new interconnection agreements. Transit providers blamed ISPs saying ISPs refusal to maintain settlement free peering and do free upgrades at peering points was some type of violation of network neutrality( which is a ridiculous broadening of what net neutrality is).



2nd, Netflix provided proof that complaints increased, but showed no proof how many customers quit over this.



This is just more finger pointing among Netflix, transit providers, and ISPs. If Netflix really believes that ISP actions are causing their loss of customers, there are courts based in Delaware where inter-corporate lawsuits resolve such disagreements.