& 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.

    From The Founder
    Light Reading sits down at CES with the head of Cisco's service provider video business, Conrad Clemson, to discuss how NFV and cloud security relate to video, the challenge of managing 4K/8K traffic, the global expansion of Netflix and virtual reality.
    Flash Poll
    Live Streaming Video
    CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
    Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
    LRTV Documentaries
    All Change in Video

    2|11|16   |   33:12   |   (1) comment


    At this moderated panel at 2020 Vision in Dublin, Alan Breznick, Cable/Video Practice Leader of Light Reading, sits down with Jeff Finkelstein, director of network architecture at Cox Communications, to discuss the rapidly changing video market.
    LRTV Custom TV
    Hosting in Ireland, Past & Present

    2|10|16   |   16:07   |   (0) comments


    Garry Connolly, president of Host in Ireland, presents the keynote at Light Reading's 2020 Vision Executive Summit in Dublin.
    Women in Comms Introduction Videos
    What's Hot in Mobile Commerce?

    2|10|16   |   12:18   |   (1) comment


    Claire Maslen, financial services relationship manager at the GSMA, talks about the development of the digital commerce sector and the types of relationships that mobile operators are developing to further their m-commerce strategies.
    LRTV Documentaries
    EANTC Tests Nokia IP Routing & Mobile Gateway VNFs for Real World Deployment

    2|9|16   |   5:08   |   (1) comment


    Nokia obtained validation of its virtualized router and virtualized mobile gateway capabilities through rigorous testing performed by EANTC. The results set a new industry benchmark for outstanding performance, scalability, resiliency and manageability. Nokia VNFs are ready for telco cloud deployment, so that service providers can accelerate mobile, business and ...
    Between the CEOs
    CEO Chat With Level 3's Jack Waters

    2|8|16   |   26:15   |   (1) comment


    Light Reading CEO and founder Steve Saunders sits down with Level 3 Communications' CTO Jack Waters to discuss hot topics like virtualization, 4K and the future of telecom...
    LRTV Custom TV
    The Composable Telco

    2|8|16   |   24:46   |   (0) comments


    Heavy Reading's Principal Analyst Caroline Chappell presents the keynote at Light Reading's 2020 Vision Executive Summit in Dublin.
    LRTV Custom TV
    Join Us at the Digital Operations Transformation Summit

    2|4|16   |   03:52   |   (0) comments


    The Digital Operations Transformation Summit on February 21, 2016 at the Crowne Plaza Barcelona Fira Centre will bring together 50 senior executives to engage in a unique debate on the opportunities and challenges presented by the transformative evolving digital landscape. RSVP now at events@lightreading.com.
    LRTV Custom TV
    Making the Test: ADVA Ensemble Connector vs. Open vSwitch

    2|4|16   |   01:28   |   (0) comments


    Light Reading, in partnership with EANTC, recently tested ADVA's Ensemble Connector, which replaces open vSwitch and offers carrier-grade capability and interoperability. The test results strengthen ADVA's credibility as a provider in the virtualization space.
    LRTV Custom TV
    Bridging the Gap Between PoCs & Deployment in NFV

    2|4|16   |   31:50   |   (0) comments


    Charlie Ashton of Wind River presents the keynote at Light Reading's 2020 Vision executive summit in Dublin.
    Between the CEOs
    CEO Chat With Mike Aquino

    2|3|16   |   17:34   |   (0) comments


    The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
    Shades of Ray
    MWC: Buckle Up for 5G & the IIoT

    2|2|16   |   02:28   |   (0) comments


    This year's Mobile World Congress looks set to be a 5G land grab and a chance to get down and dirty with the Industrial Internet of Things (IIoT) – but what will the 5G discussions actually be about?
    LRTV Custom TV
    Case Study: Building China's Next-Gen TV Networks

    2|2|16   |   5:01   |   (0) comments


    With over 2 billion viewers worldwide, Shenzhen Media Group is one of China's largest content producers. By partnering with Huawei and Sobey, SZMG was able to modernize media operations with the Converged News Center, a production studio that is a model for next-generation workflows.
    Upcoming Live Events
    March 10, 2016, The Cable Center, Denver, CO
    April 5, 2016, The Ritz Carlton, Charlotte, NC
    May 23, 2016, Austin, TX
    May 24-25, 2016, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Hot Topics
    AT&T Lights Fire Under 5G, Plans 2016 Trials
    Iain Morris, News Editor, 2/12/2016
    Yahoo & Verizon Sitting in a Tree...
    Brian Santo, Senior editor, Test & Measurement / Components, Light Reading, 2/8/2016
    Vodafone: Flexible Work Policies Boost Profits
    Sarah Thomas, Editorial Operations Director, 2/8/2016
    It's Time to Integrate OTT Video
    Alan Breznick, Cable/Video Practice Leader, 2/8/2016
    Andreessen Facepalms on Facebook Free Basics
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 2/10/2016
    Like Us on Facebook
    Twitter Feed
    Webinar Archive
    BETWEEN THE CEOs - Executive Interviews
    Light Reading CEO and founder Steve Saunders sits down with Level 3 Communications' CTO Jack Waters to discuss hot topics like virtualization, 4K and the future of telecom...
    The former CEO of Overture Networks, Mike Aquino, discusses why truly open virtualization solutions provide service providers with the greatest choice.
    Live Digital Audio

    Broadband speeds are ramping up across Europe as the continent, at its own pace, follows North America towards a gigabit society. But there are many steps to take on the road to gigabit broadband availability and a number of technology options that can meet the various requirements of Europe’s high-speed fixed broadband network operators. During this radio show we will look at some of the catalysts for broadband network investments and examine the menu of technology options on offer, including vectoring and G.fast for copper plant evolution and the various deployment possibilities for FTTH/B.