news2_1 28/02/2014 12:56 Page 4
MONITOR
Netflix pays Comcast for better connection
omcast and Netflix have agreed
what they describe as “a mutually beneficial” interconnection
agreement that will provide Comcast’s
broadband customers with a highquality Netflix video experience for
years to come.
The pair say that working collaboratively
over many months, they have established a
more direct connection between Netflix and
Comcast, similar to other networks, that is
already delivering a better user experience
to consumers, while also allowing for future
growth in Netflix traffic. The companies say
Netflix receives no preferential network
treatment under the multi-year agreement,
terms of which are not being disclosed.
The announcement is evidence of a shift
in the balance of power in favour of Internet
access providers following a an Appeal Court
ruling mid-January that eliminated net neutrality rules that prohibited Internet
providers from prioritising content.
According to Michael Weinberg, vice
president of US digital advocacy group
Public Knowledge, an Internet
Service Provider is now telling content providers that the only way its
service can work is if an extra fee is
C
paid. “The Internet Service Provider is
injecting itself into the relationship between
Netflix and its customers,” he observes.
Findings from network intelligence company Sandvine’s Global Internet Phenomena
Report 2013 suggest that Netflix was the
unchallenged leader
for traffic, accounting
for 31.6 per cent of
downstream traffic
during peak period.
Although noting that
Netflix’s share of
traffic had decreased
slightly since its 1H 2013 study, it should not
be interpreted as a decline in the dominance
of the service at the expense of Netflix’s
competitors. “In fact, the bulk of data collection for this report occurred before Netflix
made SuperHD content available to all subscribers, regardless of the service provider.
Based on initial findings f ɽ