Originally published: June 5, 2012
Last updated: June 5, 2012 - 3:37pm
Netflix has created its own content delivery network called Open Connect. It's a series of servers, routers and fiber that can send Netflix video from the source to Internet Service Providers (ISPs).
Previously, Netflix had been relying exclusively on third parties to deliver its content from its servers to ISPs. Level 3 had been the company's primary content delivery network since November 2010, but Netflix also relied on Akamai to handle some of its traffic. Shares of Akamai plunged on the news. About 5% of Netflix content is now being served up by Open Connect, and Netflix said in a blog post that it expects Open Connect to eventually become its primary delivery tool. It will make the shift gradually, as its multi-year agreements with the third parties come to an end. Why make the change? Netflix serves up just under 1 billion hours of streaming video per month, second only to Google's YouTube. That amounts to petabytes of data -- millions of gigabytes each month -- sent over borrowed networks. At a certain point, it makes sense to stop relying on landlords and buy the building yourself.
- In Netflix's Version of Net Neutrality, It's Entitled to Non-Neutral Treatment
- 'We're Literally Watching the Internet Be Rebuilt'
- It’s on: Time Warner Cable alleges that Netflix discriminates against its customers
- Netflix is a bandwidth hog. Who will pay?
- Netflix, Egypt, and the Case for Net Neutrality
- State of the Internet: Globally, Broadband Continues to Grow
- Netflix CDN v. The Cable Guys or "Comcast v. Level 3 Part Deux -- Peering Payback!"
- How Alcatel-Lucent made the Internet 5 times faster
- Google offers opt-out for Wi-Fi tracking
- Netflix: ISPs Overcharging Subs With Tiered Data Plans
- Netflix loves Google Fiber, thinks Uverse is too slow for its own good
- December ISP Rankings for the USA
- How Big Were the Winter Olympics Online?
- Bringing Competition and Innovation to the TV Set-Top Box
- FCC ruling brings e-Rate funding to more applicants