Video on Demand is booming. Netflix sees accelerated growth of its global customer base. Netflix’ proprietary network and peering facilities have been scaled to facilitate numerous concurrent users that request the large volumes of data that video consists of. However, Netflix cannot control the last mile to the customer’s home. That segment in the connectivity chain is in control of the customer’s internet provider.
That provider needs to invest in scaling up as well, so that it can handle concurrent use and prevent increasing latencies when so many people in the same neighborhood overload the network’s capacity.
Who is going to pay for that? The customers? They will be reluctant to do so as they already pay for internet access and for the Netflix subscription. The internet access provider? What will they get in return if they cannot charge the customer? Netflix? For connections they do not own?
This is why in de US there is a dispute between Netflix and internet service providers. A lot of money is at stake, together with customer experience. Who is willing to take the blame when streaming is interrupted – Netflix or the internet providers? Read more
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