Netflix Blasts Internet Providers ISP: ‘Consumers Deserve Better’


    Netflix CEO Reed Hastings says big Internet service providers “are willing to sacrifice the interests of their own customers to press Netflix and others to pay.“The traditional form of net neutrality which was recently overturned by a Verizon lawsuit is important, but insufficient,” Hastings said. “Without strong net neutrality, big ISPs can demand potentially escalating fees for the interconnection required to deliver high quality service.” Given the massive amount of data consumption Netflix generates around a third of traffic Online during peak hours the big ISPs argue that it should help foot the bill for delivery. But Hastings says Netflix is simply satisfying requests from the ISPs’ customers, who pay steep monthly bills in the expectation that their content will be delivered at a certain speed regardless of where it comes from. In many places, he noted, consumers have just one or two choices for broadband Internet service. SEE MORE AFTER CUT>>>>

    “The big ISPs can make these demands driving up costs and prices for everyone else because of their market position,” Hastings wrote. Comcast vice president David Cohen said in a statement that the FCC’s net neutrality rules were never designed to deal with paid connections between networks, “which have been an essential part of the growth of the Internet for two decades.” “Providers like Netflix have always paid for their interconnection to the Internet and have always had ample options to ensure that their customers receive an optimal performance through all ISPs,” Cohen said. “We are happy that Comcast and Netflix were able to reach an amicable, market-based solution to our interconnection issues and believe that our agreement demonstrates the effectiveness of the market as a mechanism to deal with these matters.”
    The main objection to this type of live-streaming has been cost, but Hayden says AFIRS is designed to save carriers money.”A typical installation would be under $100,000 including the box and the installation parts and the labor,” said Hayden. “Normally our customers recover that expense in a matter of months to, at most, a couple of years by virtue of the savings it creates.”Those savings come from the ability to troubleshoot mechanical problems while the plane is in the air, he says, as well as collect data that can help cut fuels costs by tracking a plane’s performance under different conditions.The potential benefits of live-streaming data were widely discussed after Air France Flight 447 crashed into the Atlantic Ocean in 2009. It took experts two years to recover the flight data recorder, That’s because once a plane sinks to the bottom of the ocean, the flight data recorder goes with it. Ultrasonic “pingers” designed to lead searchers to the box have a radius of two miles, and the recorder’s batteries die after 30 days.Still, former Inspector General of the Department of Transportation Mary Schiavo says carriers won’t get on board with live streaming technology unless they have to.”[Airlines are] very cost sensitive. They simply will not add additional safety measures unless mandated by the Federal Government,” 
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