Verizon Public Policy on Netflix

Nick Hilliard nick at
Sun Jul 13 10:58:06 UTC 2014

On 13/07/2014 01:22, nanog at wrote:
> "Open Connect" is not, in fact, a CDN. Nor is it "peering." It is merely a set
> of policies for direct connection to ISPs, and for placing servers in ISPs' 
> facilities, that is as favorable as possible in every way to Netflix. It costs 
> Netflix as little as possible and the ISP as much as possible.

it's a local cache server and of course it costs Netflix as little as
possible because they're a business not a charity.

The access service provider gets better performance, gets to choose where
in their network makes most sense to have the device installed, and gets to
save on transit / long-hauling costs.  The overall traffic figures aren't
changed in any material way, so it's not obvious why you claim that "it
costs [...] the ISP as much as possible", because it just doesn't.

For local content cache services of this type, some service providers are
large enough to be able to financially muscle the content providers into
paying for hosting / local connectivity fees, etc.  This is nearly always a
function of whether that sort of a deal can be strong-armed or not.  The
reverse is also true: the content providers will nearly always decline to
pay hosting and connectivity fees if they feel they can get away with it.
Both situations are a reflection of the relative importance of each
business to each other.


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