Netflix

Squid Game is just the beginning. But unfortunately, we have come to a crossroads where Internet gatekeepers could get to decide if the next great Korean story can be watched, and loved, by the world. A single broadband player in Korea is seeking to use its dominance to extract an arbitrary payment from streaming services like Netflix, for simply making our shows and films available on the internet to Korean consumers, who mind you, are already paying for their internet connection. We are doing our part to ensure Netflix isn’t a burden on Korean broadband companies.

Netflix believes that achieving strong net neutrality is critical to maintaining a vibrant, open Internet to promote free expression, diversity of content, and continued innovation. ISPs should not impede, favor, or charge Internet services that consumers choose to use.

To prevent this, the Commission should adopt clear enforceable anti-discrimination and no-blocking rules for the last mile. The Commission’s proposal does little to protect the open Internet.

Following ISPs to monetize congestion will likely create more congestion, threatening the current model that has made the Internet so successful, and likely raising barriers for innovative services.

Title II provides a solid basis to adopt prohibitions on blocking and unreasonable discrimination by ISPs.

[Marie is a member of the Netflix communications team]

We have just added May data to the Netflix ISP Speed Index, our monthly update on which Internet Service Providers (ISPs) provide the best prime time Netflix streaming experience.

The Netflix ISP Speed Index aims to provide transparency and help consumers understand the Internet access they’re actually getting from their ISP. The average Netflix stream is about 2 Mbps (with most streams ranging from 256Kbps to 5.8Mbps), a fraction of the bandwidth most consumers purchase from their broadband provider. Still, in some cases, people are unable to enjoy a high quality Netflix experience.

As part of this transparency campaign, we started a small scale test in early May that lets consumers know, while they’re watching Netflix, that their experience is degraded due to a lack of capacity into their broadband provider’s network. We are testing this across the US wherever there is significant and persistent network congestion. This test is scheduled to end on June 16.

Some broadband providers argue that our actions, and not theirs, are causing a degraded Netflix experience. Netflix does not purposely select congested routes. We pay some of the world’s largest transit networks to deliver Netflix video right to the front door of an ISP. Where the problem occurs is at that door -- the interconnection point -- when the broadband provider hasn’t provided enough capacity to accommodate the traffic their customer requested.

[Evers is part of the communications team at Netflix]

[Commentary] As the person at Netflix responsible for content delivery, I spend a lot of time thinking about Netflix’s Open Connect CDN and its interconnection with Internet service providers (ISPs).

Netflix has a mutually beneficial relationship with nearly every ISP in every market where we provide service. But this is less the case for the largest ISP in the US, Comcast, which is trying to become even larger by acquiring Time Warner Cable. For a content company such as Netflix, paying an ISP like Comcast for interconnection is not the same as paying for Internet transit.

Transit networks like Level3, XO, Cogent and Tata perform two important services: (1) they carry traffic over long distances and (2) they provide access to every network on the global Internet. When Netflix connects directly to the Comcast network, Comcast is not providing either of the services typically provided by transit networks. Comcast does not carry Netflix traffic over long distances.

Netflix is itself shouldering the costs and performing the transport function for which it used to pay transit providers. Netflix connects to Comcast in locations all over the US, and has offered to connect in as many locations as Comcast desires. So Netflix is moving Netflix content long distances, not Comcast. Nor does Comcast connect Netflix to other networks.

In fact, Netflix can’t reach other networks via Comcast’s network. For all these reasons, Netflix directly interconnects with many ISPs here in the US and internationally without any exchange of fees.

In sum, Comcast is not charging Netflix for transit service. It is charging Netflix for access to its subscribers. Comcast also charges its subscribers for access to Internet content providers like Netflix. In this way, Comcast is double dipping by getting both its subscribers and Internet content providers to pay for access to each other.

[Florence is vice president of content delivery at Netflix]

[Commentary] To ensure the Internet remains humanity's most important platform for progress, network neutrality must be defended and strengthened. The traditional form of net neutrality which was recently overturned by a Verizon lawsuit is important, but insufficient.

This weak net neutrality isn't enough to protect an open, competitive Internet; a stronger form of net neutrality is required. Strong net neutrality additionally prevents Internet service providers (ISPs) from charging a toll for interconnection to services like Netflix, YouTube, or Skype, or intermediaries such as Cogent, Akamai or Level 3, to deliver the services and data requested by ISP residential subscribers. Instead, they must provide sufficient access to their network without charge.

Without strong net neutrality, big ISPs can demand potentially escalating fees for the interconnection required to deliver high quality service. The big ISPs can make these demands -- driving up costs and prices for everyone else -- because of their market position. For any given US household, there is often only one or two choices for getting high-speed Internet access and that’s unlikely to change. Furthermore, Internet access is often bundled with other services making it challenging to switch ISPs. It is this lack of consumer choice that leads to the need for strong net neutrality.