Light Reading

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.

    Flash Poll
    From The Founder
    Ericsson's Hyperscale Datacenter System (HDS) 8000, featuring Intel's Rack Scale Architecture, caused a stir when it was announced at MWC 2015. For more on this revolutionary product, join me on Thursday, April 30 at 12:00 p.m. EST for a Super Webinar event, A New Hardware Paradigm for the Telco Data Center.
    LRTV Documentaries
    CableLabs' Clarke Updates Cable Virtualization

    4|23|15   |   05:41   |   (1) comment


    Former BT exec now leading CableLabs' NFV and SDN efforts explains key role of open source and updates efforts to virtualize the home network.
    LRTV Interviews
    Ericsson's CTO Talks Transformation: Pt. II

    4|23|15   |   08:19   |   (1) comment


    In the second installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about cultural change, network slicing and technology advances.
    LRTV Interviews
    Ericsson's CTO Talks Transformation: Pt. I

    4|23|15   |   09:27   |   (3) comments


    In the first installment of an in-depth two-part interview, Ericsson's CTO Ulf Ewaldsson talks to Light Reading CEO and founder Steve Saunders about the incredible transformation underway in the communications networking industry.
    LRTV Documentaries
    LTE Paves the Way for the 5G Revolution

    4|20|15   |   4:20   |   (0) comments


    Håkan Andersson, head of 5G product strategy of the Radio Business Unit at Ericsson, discusses the role of LTE, the US and other industry verticals in building a true 5G ecosystem.
    LRTV Documentaries
    The 3GPP's Road to 5G Standardization

    4|17|15   |   4:43   |   (0) comments


    Satoshi Nagata, chairman of the 3GPP's TSG-RAN group and a manager at NTT Docomo, explains the standardization process for 5G, as well as the biggest challenges and opportunities.
    LRTV Documentaries
    AlcaLu CTO Makes the Case for a New 5G Air Interface

    4|16|15   |   3:54   |   (0) comments


    Michael Peeters, CTO of wireless at Alcatel-Lucent, explains why 5G will require a new air interface to meet its diverse performance targets.
    LRTV Documentaries
    AlcaLu + Nokia: The New Uber-Vendor

    4|15|15   |   2:42   |   (4) comments


    Heavy Reading Senior Analyst Gabriel Brown discusses the technological and competitive opportunities and challenges if a merger between Alcatel-Lucent and Nokia comes to pass.
    LRTV Huawei Video Resource Center
    Huawei's Data Center Power Play

    4|15|15   |   6:22   |   (0) comments


    Huawei has developed industry-leading energy efficiency capabilities for its indoor and outdoor data center solutions, explains Dr. Fang Liangzhou, vice president of Huawei's Network Energy product Line.
    LRTV Huawei Video Resource Center
    Huawei’s Routers, Switches Get the Green Mark

    4|15|15   |   2:02   |   (0) comments


    TUV Rheinland's Frank Dudley explains how Huawei's routers and switches have been successfully tested by energy efficiency experts and have gained Green Mark Certification.
    LRTV Documentaries
    A Finn, a Frenchman & a Guy From New Jersey Walk Into a Merger...

    4|15|15   |   3:17   |   (0) comments


    Stop us if you've heard this one before... Light Reading CEO Founder & CEO Steve Saunders weighs in on the technical and cultural implications of a Nokia and Alcatel-Lucent merger.
    LRTV Huawei Video Resource Center
    Accounting for Better Solutions

    4|10|15   |   02:31   |   (1) comment


    Murad Yousuf, CTO at Saudi Arabia's Ministry of Finance (Dept. of Zakat & Income Tax), talks about the benefits of deploying router technology from Huawei.
    LRTV Huawei Video Resource Center
    What's in Store for Huawei & DataCore?

    4|10|15   |   05:44   |   (0) comments


    At the CeBIT trade show in Hannover, Germany, George Teixeira, CEO of software-defined storage (SDS) specialist DataCore Software, explains why he has just signed a partnership agreement with Huawei Technologies.
    Upcoming Live Events
    May 6, 2015, Georgia World Congress, Atlanta, GA
    May 12, 2015, Grand Hyatt, Denver, CO
    May 13-14, 2015, The Westin Peachtree, Atlanta, GA
    June 8, 2015, Chicago, IL
    June 9-10, 2015, Chicago, IL
    June 9, 2015, Chicago, IL
    June 10, 2015, Chicago, IL
    September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
    October 6, 2015, Westin Peachtree Plaza, Atlanta, GA
    November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
    All Upcoming Live Events
    Infographics
    In its latest survey covering network operators' plans and strategies for ICT transformation, Heavy Reading asked telecom operators worldwide to identify the most important goals and objectives for their ICT transformation initiatives. Heavy Reading also asked operators about the importance of a "digital first" strategy, which enables customers to complete an interaction across different digital channels, such as web and mobile self-service and social media.
    Hot Topics
    Comcast Formally Ends Its Bid for TWC
    Mari Silbey, Independent Technology Editor, 4/24/2015
    What if the Comcast Merger Fails?
    Mari Silbey, Independent Technology Editor, 4/20/2015
    Google's WiFi-First Mobile Service 'Fi' Is Here
    Dan Jones, Mobile Editor, 4/22/2015
    Comcast Merger May Hinge on Hulu
    Mari Silbey, Independent Technology Editor, 4/22/2015
    Google Ready to Release Thousands of Loons
    Sarah Thomas, Editorial Operations Director, 4/20/2015
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Many leading communications companies can claim to have undergone significant periods of reinvention during their histories, but none have been through more major ...
    Data Center Interconnect, or DCI, is one of the hottest sectors in telecom currently. Since coming back to Light Reading last year, prodigal-son style, I've ...
    Cats with Phones
    Learning Curve Click Here
    Pierre could never remember how to use Excel.
    Latest Comment