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Netflix has their own ISP. Netflix's ISP and Verizon pay eachother nothing to exchange traffic (called peering). Verizon wakes up one day and says, "Shit out

Netflix has their own ISP. Netflix's ISP and Verizon pay eachother nothing to exchange traffic (called peering). Verizon wakes up one day and says, "Shit out of all the ISPs we peer with, Netflix and their ISP is responsible for 35% of our traffic, we have to do huge upgrades on the link to them, and they aren't paying us a dime" That's my understanding of what is going on.

anoncow 12y ago
Does Netflix's ISP pay anything to anyone? If no why does linode make me pay for data transfer? Thanks for replying (Linode is just an example)
- ecnahc515 12y ago
  To prevent you from abusing the network and keep their data center not congested, and have other customers service not degraded by your uses. Linode isn't an ISP, they still have to deal with ISPs for the end user, which is why it is different.
fekberg 12y ago
The traffic exchange would only occur once a customer routing data over a Verizon network uses Netflix, no? Meaning that the 35% of the Verizon network usage that Netflix uses, is due to customers actually using the connection they pay for, no? As an ISP, I think if you are offering 100Mbps unlimited in/out, you should Expect full thrust from every connection, or at least be capable of delivering that. I know it's not really realistic, they need to assume that some people, sometimes are disconnected but if I am paying for a connection and a certain level of throughput, I expect to get that. Just my point of view, correct me if my assumptions are incorrect!
- sliverstorm 12y ago
  Do you have any idea what internet service would cost if they built every node to handle 100% of the Internet's traffic?
  - fekberg 12y ago
    Hence why I said "I know it's not really realistic". To answer your question though, I have no idea. Do you? I'd love to know what an ISP builds to expect in the terms of constant traffic..
- bm1362 12y ago
  Over subscription is what drives economies of scale in IaaS and PaaS. It allows companies to drive down prices and increase performance for the p99 customers.

anoncow 12y ago

Does Netflix's ISP pay anything to anyone? If no why does linode make me pay for data transfer? Thanks for replying (Linode is just an example)

ecnahc515 12y ago
To prevent you from abusing the network and keep their data center not congested, and have other customers service not degraded by your uses. Linode isn't an ISP, they still have to deal with ISPs for the end user, which is why it is different.

fekberg 12y ago

The traffic exchange would only occur once a customer routing data over a Verizon network uses Netflix, no? Meaning that the 35% of the Verizon network usage that Netflix uses, is due to customers actually using the connection they pay for, no? As an ISP, I think if you are offering 100Mbps unlimited in/out, you should Expect full thrust from every connection, or at least be capable of delivering that. I know it's not really realistic, they need to assume that some people, sometimes are disconnected but if I am paying for a connection and a certain level of throughput, I expect to get that. Just my point of view, correct me if my assumptions are incorrect!

sliverstorm 12y ago
Do you have any idea what internet service would cost if they built every node to handle 100% of the Internet's traffic?
- fekberg 12y ago
  Hence why I said "I know it's not really realistic". To answer your question though, I have no idea. Do you? I'd love to know what an ISP builds to expect in the terms of constant traffic..
bm1362 12y ago
Over subscription is what drives economies of scale in IaaS and PaaS. It allows companies to drive down prices and increase performance for the p99 customers.