This would be true if not for the second half of the program:
>or can save even more transit costs by putting our free storage appliances in or near their network.
They don't have to interconnect to anyone. Netflix is even offering them storage devices to keep the traffic internal to their own networks.
Re:Netflix responds to Verizon
by devicenull on Tuesday June 10, 2014 @11:40AM
(#7873164)
> OpenConnect means "You're welcome to spend a bunch of money upgrading your interconnection to our free network"
Or colo their equipment https://www.netflix.com/openconnect/hardware . If upgrading interconnects is such an expensive issue, surely these ISPs could find 4u somewhere to stick one of these boxes in?
Re:Netflix responds to Verizon
by lotsofmangos on Tuesday June 10, 2014 @02:50PM
(#7874553)
Constantly upgrading telecoms infrastructure to cope with increasing demand is the only way to stay in business if you are a telecoms company, unless you have a monopoly. If they think realtime video is bad, they are really screwed in the long run.
Quasi-realtime video has the special distinction of competing with their own video offerings, e.g. see https://news.ycombinator.com/item?id=7873331 for some Verizon numbers.
There is a cost involved with peering, even if the peering relationship is "free". That cost is the crux of much of these issues today, as Verizon (and Comcast and others) feel that Netflix should pay for their own in-house upgrades, because Netflix is creating the need for those upgrades.
Netflix argues, and I agree, that the customer is creating the demand for the data, and the customer is paying for access to the data, and the customer is paying for the infrastructure to get the data they're requesting.
OpenConnect means "You're welcome to spend a bunch of money upgrading your interconnection to our free network"