& cplSiteName &

Netflix CEO Keeps Whining About Comcast

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
4/16/2012
50%
50%

Here's what's pushing cable's buttons this morning.

  • Netflix Inc. (Nasdaq: NFLX) CEO Reed Hastings took to Facebook again to air his grievances about Comcast Corp. (Nasdaq: CMCSA, CMCSK)'s streaming video policy on the Xbox 360, arguing that it violates network neutrality rules. He's upset that anything streamed via the Xfinity TV app on the gaming console doesn't count against a user's monthly 250-gigabyte data cap, while streaming of Netflix or the standalone HBO GO app on the device does.

    "Comcast [is] no longer following net neutrality principles. Comcast should apply caps equally, or not at all," Hastings wrote. Comcast has maintained that video streamed via its Xfinity TV app on the Xbox doesn't apply toward caps because it's delivered over its private IP network, but later changed that language in its FAQ to say that the "Xbox 360 running our Xfinity TV app essentially acts as an additional cable box for your existing cable service." (See Comcast Won't Cap Xbox 360 Streaming .)

  • Roku Inc. has entered the Canadian market by accepting orders for two streaming players -- the Roku 2 XD and the Roku 2 XS. The Roku 2 XS (C$109.99; US$109.97) is the company's top-of-the-line streaming player, offering resolution up to 1080p HD. Roku said its app menu for the Canadian market, which today includes popular ones like Netflix and Crackle, will broaden at a pace similar to the U.S., where it already offers more than 450 "channels." (See O, Canada! Netflix Streaming Gets a Reprieve.)

  • The Comcast Media Center (CMC) has inked a deal to provide live coverage of the United Launch Alliance (ULA)'s rocket launches, which are delivered via its streaming media service. The CMC is delivering feeds via fiber for closed-circuit viewing at ULA's 11 U.S. venues, including Cape Canaveral. The ULA designs, builds and launches birds for NASA and the U.S. Department of Defense.

  • DirecTV Group Inc. (NYSE: DTV)'s new distribution deal with Starz Entertainment LLC adds in TV Everywhere features that will let DirecTV subs watch the premium programmer's content on a range of mobile devices.

  • Cisco Systems Inc. (Nasdaq: CSCO) and Harmonic Inc. (Nasdaq: HLIT) will both help NBCUniversal LLC with its multi-screen coverage of the 2012 Summer Olympics in London. Cisco's will pitch in pieces of Videoscape for NBC's IP video production, content management and network distribution, while Harmonic adds in its MediaGrid shared storage systems and ProMedia Carbon transcoding software.

    — Jeff Baumgartner, Site Editor, Light Reading Cable

    (10)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    msilbey
    50%
    50%
    msilbey,
    User Rank: Blogger
    12/5/2012 | 5:36:24 PM
    re: Netflix CEO Keeps Whining About Comcast


    Maybe the cable providers should sell access to their managed IP networks in the last mile to Netflix. (Gee, like a CDN model) Then Netflix could foot the bill and take caps off the table for subscribers. Of course that would mean subscription rates would have to go up. Actually, ideally consumers should get a choice- $8 subscriptions with caps, or higher-priced subscriptions without caps. Actually, that's kind of what we have now - Netflix or cable. And the circle goes round.

    paolo.franzoi
    50%
    50%
    paolo.franzoi,
    User Rank: Light Beer
    12/5/2012 | 5:36:23 PM
    re: Netflix CEO Keeps Whining About Comcast


     


    If you take what might be coming to the logical extreme and cable does SDV using IP Video it will become quite clear that all this mumbo jumbo is rather tied up in nonsense.  The definitions and allocation of bandwidth is arbitrary and at the whim of the access provider (whether its cable or telco).


     


    seven

    Telco
    50%
    50%
    Telco,
    User Rank: Light Beer
    12/5/2012 | 5:36:23 PM
    re: Netflix CEO Keeps Whining About Comcast


    I want to say the solution is in the network tools to allow some content to be in the Advertiser+Revenue Share+Subscriber DATA Plan of a Carrier Portal while other providers push Subscriber subscription+Advertiser+Carrier network management purchase.  But the shift is really headed towards Advertiser+Revenue Share+Subscriber DATA Plan of a Carrier Portal and everyone else gets best effort; kind of like WiFi HotSpot provided by AT&T for AT&T subscribers at Starbucks and the balance of Free Wi-Fi from Starbucks is a dribble for the balance of users.


    I am a carrier revenue advocate and I am a Net Neutrality proponent so this schytophrentic behavior is quite normal for me.  I cannot think of an App I use in any of my carriers' portals, instead I go to the destinations off the radar such as IEEE, Purdue.edu, Light Reading.   I have never been to Netflix and it is perhaps 1 or twice a year I go to U-Tube.


    The Carriers, Content/App Developers and the consumer have some hard choices.

    Jeff Baumgartner
    50%
    50%
    Jeff Baumgartner,
    User Rank: Light Beer
    12/5/2012 | 5:36:23 PM
    re: Netflix CEO Keeps Whining About Comcast


     


    That ultimately might be where this ends up shifting... if you want better than best effort, you're going to have to pay for it... but will even that sort of idea get the network neutrality advocates' dander up?  I suspect it will, and I don't think this debate is going to end anytime soon.


    And, you're right, AT&T does set aside some of its capacity for its managed IP video service. But as we've discussed before, this will also cause confusion for consumers, who likely don't know which app on the xbox counts against the cap and which one doesn't. Many customers who don't read the policies and the FAQs might not even be aware that a cap even exists. JB


     


     

    paolo.franzoi
    50%
    50%
    paolo.franzoi,
    User Rank: Light Beer
    12/5/2012 | 5:36:22 PM
    re: Netflix CEO Keeps Whining About Comcast


     


    yarn,


    Easy and illegal.


    seven


     

    yarn
    50%
    50%
    yarn,
    User Rank: Light Sabre
    12/5/2012 | 5:36:22 PM
    re: Netflix CEO Keeps Whining About Comcast


    I don't think Netflix is really interested in opportunities to foot the bill for last mile delivery as that would be an extra cost and hurt their profits. However, for a service provider it's quite easy to zero-rate specific application types or web destinations.

    paolo.franzoi
    50%
    50%
    paolo.franzoi,
    User Rank: Light Beer
    12/5/2012 | 5:36:19 PM
    re: Netflix CEO Keeps Whining About Comcast


     


    I believe Netflix DOES pay for its bandwidth.  I doubt anybody runs connections to their servers for 0.


    So unless you plan to start charging all content providers (like Light Reading here) and guarantee the performance of your network in all cases then you best start thinking about something else.  Do you plan to compensate Netflix if you have a network outage?


    seven


     

    gtchavan
    50%
    50%
    gtchavan,
    User Rank: Light Beer
    12/5/2012 | 5:36:19 PM
    re: Netflix CEO Keeps Whining About Comcast
    Net neutrality is dead, networks don't come free. Everyone has to pay for their store front.
    dude_1_1_1
    50%
    50%
    dude_1_1_1,
    User Rank: Light Beer
    12/5/2012 | 5:36:19 PM
    re: Netflix CEO Keeps Whining About Comcast


    Time to start calling for help.  Hard to see how they will escape unbruised.

    RBR
    50%
    50%
    RBR,
    User Rank: Light Beer
    12/5/2012 | 5:36:17 PM
    re: Netflix CEO Keeps Whining About Comcast


    CDN’s are the fulcrum.  They get paid by content providers for eyeballs served for which they have a vested interest in premium access to service provider networks.  Usage caps on terrestrial service providers are driven by the wholesale cost for Internet access which they then mark up for retail; their local networks most often have ample capacity.  It is in the market’s interest that the role of Internet Service Provider shift from the local service providers to CDN’s with local access focused on being “smart” data pipes.  Broadband Access as a retail service (not the wholesale SLA type, direct retail to end user) where customers can then choose which CDN they want as their ISP.  CDN’s provide for their own capacity and interconnect facility with the local service provider (role reversal) just as LD providers had to enable their PICC selection with local telco’s.  See Comcast Level 3 Peering Dispute (http://www.lightreading.com/document.asp?doc_id=201412&site=lr_cable).  The same forces drive OTT Video and Telephone services.  Netflix, CDN, Net Neuts and SP’s all win; albeit some need to revalue where their core business is.

    From The Founder
    Cisco's Conrad Clemson, recently promoted to head up the company's Service Provider Apps & Platforms developments, talks to Light Reading's Founder and CEO Steve Saunders about how he's bringing cloud video, mobile and virtualization together to empower network operators.
    Flash Poll
    Live Streaming Video
    Charting the CSP's Future
    Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
    LRTV Custom TV
    4.5G Evolution: Peter Zhou on Advanced MIMO Technologies & 5G Business Prep

    2|25|17   |     |   (0) comments


    In the process of service transformation, operators need to catch three major opportunities and start deploying in 4.5G networks, such as video, household broadband access and digital transformation of vertical industries. 5G is coming. Operators don't need to wait for it to happen but should progressively deploy 4.5G networks by introducing 5G-oriented ...
    LRTV Custom TV
    What WTTX Can Deliver

    2|23|17   |     |   (0) comments


    Mohamed Madkour explains the benefits of WTTX while Dimitris Mavrakis discusses the challenges of delivering home broadband access.
    LRTV Custom TV
    Huawei on Mobile Broadband

    2|23|17   |     |   (0) comments


    Mohamed Madkour shares his vision on MBB for the next three years.
    LRTV Custom TV
    Analysys Mason Talks About the Future of Digital Operations

    2|23|17   |     |   (0) comments


    The future of digital operations has three key aspects: 1. Highly automated operations for both service and network; 2. Highly converged BSS/OSS for business and resources; 3. Highly merged management and control for real-time cloud native operations.
    LRTV Interviews
    Software Trends in the Telecom Sector

    2|23|17   |   03:40   |   (0) comments


    Heavy Reading senior analyst James Crawshaw talks with Telecoms.com Editorial Director Scott Bicheno about trends and developments in the telecoms software sector and what to expect at MWC 2017.
    LRTV Custom TV
    Huawei's Pre-MWC Analyst Briefing 2017 Highlights

    2|22|17   |     |   (0) comments


    Huawei shares its vision for this year's MWC.
    LRTV Interviews
    MWC17: 5G, Cloud RAN & More

    2|21|17   |   04:35   |   (0) comments


    Ovum Senior Analyst Julian Bright talks to Scott Bicheno from Telecoms.com about all things MWC, including Cloud RAN, Huawei's pitch to the industry and the road to 5G.
    LRTV Interviews
    MWC 2017's Key 2-Letter Terms

    2|20|17   |   08:29   |   (1) comment


    5G, AI, VR... these are just some of the two-letter terms that will dominate show-floor chat at MWC 2017 in Barcelona, according to these two blow-hards (a.k.a. Scott Bicheno of Telecoms.com and Light Reading's Ray Le Maistre). And then there's PB...
    LRTV Interviews
    Key Trends for Mobile Operators in Developing Markets

    2|20|17   |   06:37   |   (0) comments


    Ovum's Matthew Reed talks to Scott Bicheno from Telecoms.com about the challenges and opportunities facing mobile operators in the developing markets of Africa and the Middle East.
    LRTV Documentaries
    YouTube Takes on Facebook Live-Streaming

    2|17|17   |     |   (0) comments


    Popular 'YouTubers' will be the first to get the new service on their smartphones. You have been warned.
    LRTV Custom TV
    Open Source NFV/SDN Automation

    2|17|17   |   05:54   |   (0) comments


    AT&T ECOMP (Enhanced Control, Orchestration, Management and Policy) code is transitioning into the Linux Foundation for placement into open source. In this video, Carol Wilson provides an update on the maturation of open source ECOMP and meets with industry leaders from AT&T, Bell Canada, Orange, Linux Foundation and Amdocs to discuss what this means for the ...
    LRTV Documentaries
    Uber & NASA Collaborate on Flying Car Project

    2|16|17   |     |   (0) comments


    Is Uber for real? Well, it's hired NASA engineer Mark Moore to lead the project, and he wouldn't come cheap.
    Upcoming Live Events
    March 21-22, 2017, The Curtis Hotel, Denver, CO
    March 22, 2017, The Curtis Hotel, Denver, CO
    March 22, 2017, The Curtis Hotel, Denver, CO
    May 15-17, 2017, Austin Convention Center, Austin, TX
    May 15, 2017, Austin Convention Center - Austin, TX
    June 6, 2017, The Joule Hotel, Dallas, TX
    All Upcoming Live Events
    Infographics
    With the mobile ecosystem becoming increasingly vulnerable to security threats, AdaptiveMobile has laid out some of the key considerations for the wireless community.
    Hot Topics
    Uber's HR Nightmare: Company Investigates Sexual Harassment Claims
    Sarah Thomas, Director, Women in Comms, 2/21/2017
    Broadband Has a Problem on the Pole
    Mari Silbey, Senior Editor, Cable/Video, 2/21/2017
    Verizon to Start Fixed 5G Customer Trials in April
    Dan Jones, Mobile Editor, 2/22/2017
    Sprint to Go Gigabit Crazy at MWC!
    Dan Jones, Mobile Editor, 2/22/2017
    MANO Marriage: ECOMP, Open-O Converge as ONAP
    Carol Wilson, Editor-at-large, 2/23/2017
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    Light Reading founder and CEO Steve Saunders chats with Sportlogiq CEO Craig Buntin about sports data analysis.
    Eyal Waldman, CEO of Mellanox Technologies, speaks to Steve Saunders, CEO of Light Reading, for an exclusive interview about the 100 GB cable challenge, cybersecurity and much more.
    Animals with Phones
    No One Likes This Click Here
    Take a hint!
    Live Digital Audio

    Playing it safe can only get you so far. Sometimes the biggest bets have the biggest payouts, and that is true in your career as well. For this radio show, Caroline Chan, general manager of the 5G Infrastructure Division of the Network Platform Group at Intel, will share her own personal story of how she successfully took big bets to build a successful career, as well as offer advice on how you can do the same. We’ll cover everything from how to overcome fear and manage risk, how to be prepared for where technology is going in the future and how to structure your career in a way to ensure you keep progressing. Chan, a seasoned telecom veteran and effective risk taker herself, will also leave plenty of time to answer all your questions live on the air.