Netflix Is Eating Up More Of North America's Bandwidth Than AnyOther Company

Wed May 18 15:14:21 UTC 2011

On 18 mei 2011, at 12:06, Leigh Porter wrote:

> Well it depends if Netflix pay for the bandwidth they use or if they get
> it all for free with non settlement peering.

The whole point of peering is that both sides benefit. A bit like one bringing the traffic to the half way point and the other taking it the other half of the way.

Remember that all bits are paid for by the customers on both sides.

> If, suddenly, your business
> model breaks because of a huge demand for high bandwidth services by
> your customers then either you need to charge your customers more or
> Netflix (or whoever) need to share the pie.

Anyone who builds an internet-related business model without taking into account the bandwidth use graph going straight from bottom left to upper right has no business being in this business. So charge your customers more if you have to.

But charging third parties for the privilige of being able to send them the data your customers, who are already paying you, are trying to retrieve will turn the internet into the next cable or phone network where innovation happens within the confines of what the network owners feel comfortable with. In other words, the end of the internet as we know and love/hate it today. Don't slaughter the goose with the golden eggs.