Netflix Takes Charge of Data Delivery

Netflix Takes Charge of Data Delivery

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In order to keep costs down, Netflix will create its own data delivery network.

Think back to 2007. Think really hard. A lot of things we take for granted weren't around. Demon's Souls was still two years off, The Dark Knight wouldn't emerge until the following summer, and a Netflix subscriber could access only DVDs. Everything changed in 2008 when Netflix introduced streaming content, and proceeded to expand its service so rapidly over the next four years that many people canceled their cable subscriptions outright. However, Netflix's success came at a cost, namely that of transmitting ever-increasing amounts of data through third parties. Now, over the course of the next few years, Netflix will take charge of its own data delivery with a network called Open Connect that will keep costs stable for consumers while expanding Netflix's library.

While Netflix is ultimately in charge of getting content to its consumers, it's not as simple as storing thousands of movies on a server and streaming them directly to a living room. Data rates vary from 0.44 to 5.18 megabytes per second, and the more demanding the content (say, an HD movie), the more third party companies charge Netflix to stream the data. With Open Connect, Netflix plans to take control of its own data delivery. While this will involve a large initial investment and transfer certain operational costs to Netflix, it still beats the current scenario in which almost 20% of a subscriber's monthly $7.99 investment goes to data transfer costs (provided that he or she watches primarily HD movies, that is).

Economics and IT aficionados will likely get a kick out of the more detailed metrics, but for those of us who simply like to switch on Netflix after a tough day at work or school, the bottom line is that Open Connect will probably keep subscription costs around a cool $8 while funneling more of that money directly to Netflix. This means potentially faster service, more content deals, and maybe even more comprehensive video selections overseas. If other large video providers decide to pursue this kind of self-sufficiency, it could be bad news for third-party data networks, but help consumers in the long run.

Source: SNL

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Well, that's good news.

Anything that helps consumers is A-OK to me. And I do love me some Netflix.

I'm for this, Netflix is one of the few services that exist that is both easier and more convenient then pirating and anything that helps them grow is good news.

Now here's to hoping they add more new stuff to the instant streams :D

Too bad Netflix is losing content faster than it can get it, not to mention that in many cases they've promised content and never delivered it. I love idea in theory and the service is great for the content they do have, but telecoms and media cartels destroy its viability by insisting on exclusive distribution deals, or high pay-per-view prices. It's pretty bad for Netflix, but it's also a problem for those media companies - sorry, I don't care about your TV shows and movies as much as you think I do, and if I have to support your horrible and dated business practices to get that content, I'll simply go somewhere else.

"Open Connect", fitting name for a company that uses proprietary technology as Silverlight to stream content, thus locking out Linux and other platforms without official support from Netflix or Microsoft.

My guess about all this new technology? They're probably going to use P2P to republish bits of video streams from customer to customer in addition to the plain old Server-to-client way. Much like Spotify does to keep down bandwidth costs. (not sure if they still do it, I had to blacklist Spotify from doing this, as it would give me fatal lag-spikes at random while gaming)

Anyways. Looking forward to Netflix' arrival here in Norway this autumn, plus I heard NRK had been in talks with them, whether this means NRK-licensed content on Netflix, or Netflix-licensed content through NRK somehow, I don't know, but time will tell.

NLS:

My guess about all this new technology? They're probably going to use P2P to republish bits of video streams from customer to customer in addition to the plain old Server-to-client way.

My understanding is they're building their own CDN based off of Backblaze's "open source" storage pod design: Backblaze Blog

The data rates needed for streaming the kind of content Netflix do via P2P methods would be prohibitive, or at least would REALLY annoy people.

We need Netflix is Australia.

I cancelled my Netflix account. They just didn't have a good library for Watch Instant.

Now if only it hadn't taken a court ruling to get them to provide subtitles.

The world is becoming an unfriendly place for middlemen.

Netflix is responsible for something like 30% of all internet bandwidth. This is a good move for them.

Sounds promising... what's the "other shoe"?

I mean, I'm sure there will be some hiccups as they work the change-over, and probably some down time as well. And I quite like Netflix, so I'll bear it with goodwill.

But I have to wonder whenever someone says "we're going to make a huge infrastructure investment, don't worry, the changes will all be positive and none of the costs will come back to you."

Fantastic. I love me some Netflix. (It also helps that Silverlight is dying and hopefully, that'll force Netflix to switch to HTML5 or something)

That's good, but they really need to get there streaming library up. 9 times out of 10 when I look for a specific movie it isn't available for streaming.

I'm just sad that I can't use Netflix in my country.
Eastern Europe is like non existing to companies. And in the rare situation they do support this region, they charge more than in other regions.

I did the month free trial and canceled before it was even over, it's a good service but theres not much content (at least in the uk) so i got bored of it fast.

Is it just for me that it shows that this thread was posted in 22 june 2011 7:11am? and if its correct then I guess necro?

Easy.
Move to lithuania. Buy a 100 dollar 3GB/S connection. Plug it into your server. Your traffic problems are solved.
Also: Start providing your services in Lithuania as a thank you for the tip.

Strazdas:
Easy.
Move to lithuania. Buy a 100 dollar 3GB/S connection. Plug it into your server. Your traffic problems are solved.
Also: Start providing your services in Lithuania as a thank you for the tip.

how much is this connection? Sounds tempting

Evil Smurf:

Strazdas:
Easy.
Move to lithuania. Buy a 100 dollar 3GB/S connection. Plug it into your server. Your traffic problems are solved.
Also: Start providing your services in Lithuania as a thank you for the tip.

how much is this connection? Sounds tempting

Personally i am sitting at a 305mbps locally and 100 mbps worldwide with a 20 dollar montly pricetag.
We can easilily support 3GBPS internet for business relatively cheap. Statistically we are 2nd in the world by internet speeds so its very useful to start hosting servers here.

I'm a little worried about how they plan to transfer over to the new system. If I have to download a 50MB application for the my PS3 then I'm fine with it. I just hope it's not like steam.

 

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