& cplSiteName &

FCC Indulges Netflix CEO

Jeff Baumgartner
LR Cable News Analysis
Jeff Baumgartner
4/17/2012
50%
50%

Another round in the bout between Reed Hastings and Comcast Corp. (Nasdaq: CMCSA, CMCSK) over the MSO's streaming video policies kicks off today's cable news roundup.

  • The Federal Communications Commission (FCC) is monitoring Comcast's streaming video policies on the Xbox 360 amid recent complaints from Netflix Inc. (Nasdaq: NFLX) CEO Reed Hastings that Comcast is violating the Commission's network neutrality rules, reports The Wall Street Journal. Hastings is ticked that using the Xfinity TV app on the gaming console will not count toward a customer's monthly broadband usage cap. But FCC rules allow MSOs to give special treatment to traffic traveling via its private IP network, as Comcast says it is doing in this case. (See Netflix CEO Keeps Whining About Comcast and Comcast's Xbox App Raises Net Neutrality Concerns.)

  • Tablet owners do about 15 percent of their TV show viewing on the devices, making tablets the clear in-home viewing alternative to big screen TVs, reports Multichannel News, citing a study of 2,500 consumers who own tablets that was commissioned by Viacom Inc. (NYSE: VIA), which owns networks such as MTV and Nickelodeon. The findings come into play as MSOs continue to pipe on-demand and a limited lineup of live, linear TV feeds to tablets and other portable devices.

  • Level 3 Communications Inc. (NYSE: LVLT) has more than doubled the capacity of its content delivery network (CDN) in anticipation of rising demand for bandwidth-intensive services such as streaming video. The upgrade boosts the company's CDN capacity to more than 5.6Tbit/s, up from the 2.15Tbit/s it put into place in late 2010, about the time Level 3 inked a deal with Netflix and sparked a network neutrality debate with Comcast. (See Comcast: Level 3 Balks at Trial Offer .)

  • OptiComm Co. Pty. Ltd. will use two Docsis 3.0-qualified cable modem termination system (CMTS) models from Casa Systems Inc. to power a wholesale hybrid fiber/coax (HFC) network it's deploying in Australia. The resulting "open access" network will provide links up to 100Mbit/s and enable partners to deliver IP video and other bandwidth-intensive services.

  • Synacor Inc. has cut a deal to build an authenticated TV Everywhere Web portal for MetroCast Communications, an MSO that serves parts of New Hampshire, Connecticut, Maryland, Virginia, Mississippi, South Carolina and Pennsylvania.

  • OfficeDrop has launched a white-label, cloud-based storage service tailored to MSOs and ISPs, offering more competition for Mozy, which has deals with cable operators such as Cox Communications Inc. and Comcast. (See Comcast Picks Mozy for Online Backup.)

    — Jeff Baumgartner, Site Editor, Light Reading Cable

    (8)  | 
    Comment  | 
    Print  | 
  • Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
    AESerm
    50%
    50%
    AESerm,
    User Rank: Light Beer
    12/5/2012 | 5:36:16 PM
    re: FCC Indulges Netflix CEO


    Capacity has doubled, but L3 says that CDN remains steady at only 2% of its core network services revenue. It expanded reach via Global Crossing, a deal that closed last Oct.

    ibarrera
    50%
    50%
    ibarrera,
    User Rank: Light Beer
    12/5/2012 | 5:36:16 PM
    re: FCC Indulges Netflix CEO


    Comcast is playing with a double edge sword. The moment they are allowed that game, it's very likely AT&T goes with the same game. And I see that other than customers and neutrality, the clear looser would be Comcast, given they have no wireless mobile service.


    So the moment this game is allowed to Comcast, very likely Verizon and AT&T will eat them alive. I don't know why they haven't thought about it.

    Jeff Baumgartner
    50%
    50%
    Jeff Baumgartner,
    User Rank: Light Beer
    12/5/2012 | 5:36:14 PM
    re: FCC Indulges Netflix CEO


    I've asked Comcast to offer more info on how they are doing this technically  from the start to the finish line, but I believe they are using their own CDN to handle streaming on the Xfinity TV app.  And some evidence of that popped up when I had some trouble signing on when it was first launched, as I got some "Xfinity servers not available" messages.  But i'm also curious how it's done from the edge, and if the Xfinity TV app traffic to the Xbox 360 is on the same bandwidth set aside for best effort HSD and is prioritized for this managed service, or if they're carving out another channel for this purpose.  I'll keep digging on it, but if the pressure keeps up and the FCC is forced to do some sort of probe just to see what's going on then the tech details will certainly show up in the filings.


    And I also wonder if Hastings would be complaining so much about this if Comcast didn't launch Streampix, its new subscription-based video streaming service. JB

    Flook
    50%
    50%
    Flook,
    User Rank: Light Beer
    12/5/2012 | 5:36:14 PM
    re: FCC Indulges Netflix CEO


    Regarding Comcast v. Netflix, FCC says it's ok for Comcast to stream because the video traffic is on its private IP network. I could be wrong, but from the subscriber to the network edge, is it still a "private" IP network?

    DCITDave
    50%
    50%
    DCITDave,
    User Rank: Light Beer
    12/5/2012 | 5:36:12 PM
    re: FCC Indulges Netflix CEO


    If Netflix traffic doesn't have to compete with Xfinity for bandwidth (since it is being transported via a different network, allegedly), and nothing is being blocked, what's the harm to Netflix?

    ibarrera
    50%
    50%
    ibarrera,
    User Rank: Light Beer
    12/5/2012 | 5:36:10 PM
    re: FCC Indulges Netflix CEO


    Seems to me the harm is that Comcast control the caps at their will.


    So I bring more questions:


    First, why they claim it's because the traffic is internal, but connecting to other Comcast customers still counts against my cap?


    Second, why anyone sign with Netflix, for a service Comcast provides, and given their contractual links to networks, probably have even more content?


    Third, wouldn't bundling services imply that Comcast can provide the same service for an imaginary smaller amount to its customers until Netflix goes out of business?


    I personally see more issues, perhaps because I don't like Comcast much, or Internet caps for that matter. And particularly, I don't like how ISP's are making their core service, more lucrative by imposing imaginary limits to charge customers more.

    AESerm
    50%
    50%
    AESerm,
    User Rank: Light Beer
    12/5/2012 | 5:36:10 PM
    re: FCC Indulges Netflix CEO


    The question that Dan Rayburn at Streaming Media is asking seems on point: How many Netflix subscribers are going over their caps? Seems fair. In any case, you've got to be streaming a lot to break 250 GB.

    ibarrera
    50%
    50%
    ibarrera,
    User Rank: Light Beer
    12/5/2012 | 5:36:09 PM
    re: FCC Indulges Netflix CEO


    And what I say is that it sounds fine and all, until Comcast comes with a new pricing scheme similar to those from AT&T, and rolls out "cheaper" plans with lower caps, bundled with their service.


    I know it's not happening yet, but why always the customers have to take the pre-emptive strike?


    At some point I was consuming 150G on average per month, synchronizing data,  consuming multimedia and sharing a lot of my personal pictures/videos with family overseas. What's to harm Netflix? Limited plans that won't fit consumers demands, but will fit Comcast profits.

    Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
    NEXT COURSE
    Friday, September 30, 1:00PM EDT
    Gigabit & the Great Migration
    Robert Howald, Vice President, Network Architecture, Comcast
    UPCOMING COURSE SCHEDULE
    Wednesday, October 5, 1:00PM EDT
    Gigabit & Smart Cities
    Joe Kochan, COO & Co-Founder, US Ignite
    Friday, October 7, 1:00PM EDT
    Gigabit & DOCSIS 3.1
    Ty Pearman, Director, Access Architecture, Comcast
    Wednesday, October 19, 1:00PM EDT
    Securing a Virtual World
    Rita Marty, Executive Director, Mobility and Cloud Security, Chief Security Office, AT&T
    in association with:
    From The Founder
    Light Reading today starts a new voyage as part of a larger Enterprise.
    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
    Flexible Deployment Approaches for the Gigabit Services Evolution

    9|29|16   |     |   (0) comments


    For many operators, the gigabit evolution begins with the shift from DOCSIS 3.0 to DOCSIS 3.1. But that move represents a change not only in the protocol itself, but in the approach to architecting their entire DOCSIS delivery chain -- from the headend to the outside plant and home gateway components.

    Jonathan Ruff, senior director of global technical ...

    LRTV Interviews
    Level 3 VP: Enterprises Need More for Less

    9|29|16   |   05:27   |   (0) comments


    Andrew Dugan, Level 3 group vice president of global technology and IT, says enterprises need more bandwidth and they need it faster and with greater security, but they want to spend less, if possible. They are looking to carriers to reduce their network complexity and help protect them from cyberattacks as well.
    LRTV Interviews
    CenturyLink: SDN/NFV Pose New Interconnection Possibilities

    9|28|16   |   04:37   |   (0) comments


    Network operators should develop new APIs and business processes for reselling virtual assets to each other, says CenturyLink's Bill Walker. That will enable them to build digital business portfolios that help them avoid becoming commodity transport providers.
    LRTV Interviews
    Level 3: Overcoming Terror of Being Supplier, Integrator & Developer

    9|28|16   |     |   (0) comments


    At Light Reading's NFV & Carrier SDN event in Denver, Travis Ewert of Level 3 Communications said there is terror in becoming supplier, integrator and developer, but it can be overcome and be cost effective.
    LRTV Custom TV
    Introducing IoT World News

    9|27|16   |   01:43   |   (0) comments


    Self-driving cars, medical sensors, smart cities... and refrigerators. In order to address the huge scope of IoT, KNect365 has created a unique online community that will help businesses to understand and monetize the opportunities that live within the IoT market. We look forward to welcoming you to IoT World News -- your gateway to a better connected future.
    LRTV Interviews
    AT&T: Reusable Functions Next NFV Key

    9|27|16   |   06:03   |   (0) comments


    The next generation of NFV has to break functions down into reusable software chunks, making everything much more cloud-like.
    LRTV Interviews
    Masergy on Security: Attackers Gaining Upper Hand

    9|27|16   |   5:10   |   (2) comments


    At Light Reading's NFV & Carrier SDN event in Denver, Ray Watson, vice president of Global Technology at Masergy, says that because of the growth in virtualization, the threat landscape is shifting in favor of the attackers. As a result, service providers need to think beyond just defending the perimeter and take a more holistic approach to security.
    LRTV Interviews
    Verizon Takes Next Step on Biz Virtualization Journey

    9|26|16   |   4:38   |   (2) comments


    At September's NFV & Carrier SDN event in Denver, Light Reading sat down with Victoria Lonker, director of Product and New Business Innovation at Verizon, to chat about where the carrier is with delivering virtualized services to business customers.
    LRTV Interviews
    Global Services: The $40B Face-Off

    9|26|16   |   05:53   |   (1) comment


    More service providers than ever before are battling it out to win a slice of what is now a $40 billion global communications services pie, explains Ovum Principal Analyst David Molony.
    LRTV Documentaries
    MEC Congress: The Key Takeaways

    9|22|16   |   03:25   |   (3) comments


    Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
    Wagner’s Ring
    Time to Shut Up About 'Dumb Pipes'

    9|22|16   |     |   (20) comments


    Service providers can't compete with OTT players. It just isn't in their DNA. Instead, service providers need to embrace what they're good at -- providing reliable, secure connectivity.
    Wagner’s Ring
    Keeping Your Tech Career Going After 50

    9|21|16   |     |   (13) comments


    How do you keep your career moving forward when you're past the half-century mark?
    Upcoming Live Events
    November 3, 2016, The Montcalm Marble Arch, London
    November 30, 2016, The Westin Times Square, New York City
    December 1, 2016, The Westin Times Square, New York, NY
    December 6-8, 2016, The Westin Excelsior, Rome
    May 16-17, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    Hot Topics
    Eurobites: Telefónica Taps Juniper for Network Security
    Paul Rainford, Assistant Editor, Europe, 9/26/2016
    WiCipedia: The Women Helping Women Edition
    Eryn Leavens, Special Features & Copy Editor, 9/23/2016
    Powell Kills the Cable Show
    Mari Silbey, Senior Editor, Cable/Video, 9/29/2016
    Telstra Sees Quadrupled Data Capacity by 2020
    Carol Wilson, Editor-at-large, 9/28/2016
    Open Source Getting on My Nerves
    Carol Wilson, Editor-at-large, 9/26/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
    Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
    Animals with Phones
    There's Nothing Like Missing a Full Minute of Pokémon Go Click Here
    Live Digital Audio

    A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

    During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.