& 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 Readingís 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.
    LIVE NOW!
    Friday, December 2, 1:00PM EST
    The SDN Approach to IP & Optical Integration
    Sterling Perrin, Senior Analyst, Heavy Reading
    UPCOMING COURSE SCHEDULE
    Friday, December 2, 1:00PM EST
    The SDN Approach to IP & Optical Integration
    Sterling Perrin, Senior Analyst, Heavy Reading
    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.
    Women in Comms Introduction Videos
    Korn Ferry Consultant: How to Find, Cultivate & Be the Best Talent

    11|30|16   |   4:10   |   (1) comment


    Erin Callaghan, a managing consultant for Korn Ferry Futurestep, shares strategies for companies to improve how they recruit and for women to ensure they don't get lost in the pipeline.
    LRTV Custom TV
    We Can Make the World More Sustainable

    11|29|16   |     |   (0) comments


    GeSI is a global e-Sustainability Initiative organization bringing together 40 big multinational companies around the world. According to GeSI's report, information and communication technology can make the world more sustainable. Luis Neves, chairman of GeSI, shared with us his opinion at Ultra-broadband Forum (UBBF2016).
    LRTV Custom TV
    Finding a New Way to Engage Customers & Drive Revenue

    11|29|16   |     |   (0) comments


    Mobile revenues are declining. Digicel, a player in the Caribbean telecommunications/entertainment space, has found a new way to engage customers and drive revenue. John Quinn, CTO of Digicel, shared with us its story at Ultra-broadband Forum (UBBF2016)
    LRTV Custom TV
    Do You Really Need Gigabit Infrastructure?

    11|29|16   |     |   (0) comments


    Altibox is the biggest fiber-to-the-home (FTTH) player and the largest provider of video and TV in Norway. They started out with zero customers in 2002. Now they have close to half a million households and companies attached to their FTTH business. Nils Arne, CEO of Altibox shared with us their story and insight on 5G at Ultra-broadband Forum (UBBF2016).
    LRTV Custom TV
    BTís Openreach Strategy & Its Updates in 2016

    11|29|16   |     |   (0) comments


    A lot of developments at Openreach this year in terms of strategy and planned investments. Peter Bell, CIO of Openreach BT, shared with us the updates of Openreach at Ultra-broadband Forum (UBBF2016).
    LRTV Custom TV
    ITU: The Broadband Is Our Future

    11|29|16   |     |   (0) comments


    At Ultra-broadband Forum, Houlin Zhao, Secretary General of ITU, discussed how important it is for countries, companies and everybody to be working together to help to build the broadband and digital economies (UBBF2016).
    LRTV Custom TV
    Tackling 5G in Dallas

    11|28|16   |     |   (0) comments


    Here are our highlights of the 5G North America show in Dallas, Texas with Light Reading's Dan Jones.
    LRTV Interviews
    Cox Prepping for Virtualization Trials

    11|14|16   |     |   (0) comments


    In this video interview, Cox's Jeff Finkelstein discusses MSO's plans to test managed business services in early 2017 and tackle Distributed Access Architectures.
    LRTV Custom TV
    Drivers & Potential of NGP

    11|11|16   |     |   (0) comments


    ETSI has created an Industry Specification Group to work on Next Generation Protocols (NGP ISG), looking at evolving communications and networking protocols to provide the scale, security, mobility and ease of deployment required for the connected society of the 21st century. The NGP ISG will identify the requirements for next generation protocols and network ...
    LRTV Custom TV
    Huawei IP 2020 for Future Networks

    11|11|16   |     |   (0) comments


    Future Networks should satisfy many requirements such as high throughput, extremely low latency, flexible mobility, intrinsic security, networking automation, and so forth. The Chief Architect of Huawei Future Networks addresses a holistic solution, i.e., IP 2020, to achieve these requirements for various future life scenarios (e.g., autonomous driving, tactile ...
    LRTV Custom TV
    Digital Object Architecture

    11|11|16   |     |   (0) comments


    Digital Object Architecture provides a basic information infrastructure that can facilitate interoperability between or among different systems, processes, and other information resources, including different identity management systems. Digital objects are networked objects that are named by digital object identifiers and instantiated by an infrastructure service ...
    LRTV Custom TV
    BT's Openreach Has High Hopes for Long-Reach VDSL

    11|11|16   |   06:04   |   (0) comments


    Peter Bell, Network Portfolio CIO at BT's access business Openreach, talks about the operator's trial of a new broadband access technology called Long Reach VDSL.
    Upcoming Live Events
    December 6-8, 2016, The Westin Excelsior, Rome
    May 16-17, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    Hot Topics
    AT&T Debuts DirecTV Now on New Video Platform
    Mari Silbey, Senior Editor, Cable/Video, 11/28/2016
    Apple Seeds 5G? Seeks 'Multi-Gigabit' Chip Designer
    Dan Jones, Mobile Editor, 11/30/2016
    Altice Plans FTTH for Entire US Footprint
    Iain Morris, News Editor, 11/30/2016
    Altice FTTH Bill Could Hit Almost $9.6B in US
    Iain Morris, News Editor, 12/1/2016
    Samsung Bows to Investors, Considers Revamp
    Iain Morris, News Editor, 11/29/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    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.
    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.
    Live Digital Audio

    Even when there's a strong pipeline of female talent in the comms industry, it tends to leak all the way to the top. McKinsey & Company says women experience pipeline leakage at three primary points: being unable to enter, being stuck in the middle or being locked out of the top. Each pipeline pain point presents its own challenges, but also opportunities to stop the leak. Wireless operator Sprint is making a conscious effort to improve its own pipeline from new recruits to the C-suite, and it wants the rest of the industry to do the same. In this Women in Comms radio show, WiC Board Member and Sprint Vice President of Enterprise Sales Nelly Pitocco will give us her take on the industry's pipeline challenges. Pitocco, who joined Sprint in May and has spent 20 years in the comms industry, will also offer solutions, share how Sprint is tackling the challenge within its own organization and take your questions live on air.