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Technology Stocks : Netflix (NFLX) and the Streaming Wars
NFLX 105.66-3.9%Nov 20 3:59 PM EST
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From: TimF8/2/2012 6:50:05 PM
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Netflix introduces its own CDN, Open Connect Network, to give ISPs more control

By Darren Murph posted Jun 4th 2012 6:52PM

It's not often that we touch on subjects surrounding content infrastructure -- lectures revolving around AWS, Level 3 and Limelight give most of us the creeps -- but that stuff is absolutely vital to keep petabytes of content flowing to our retinas. As the company's business shifts from by-mail to instant gratification, there are also decisions that need to be made about delivery. Despite signing a three-year deal with Limelight and Level 3 right around eighteen months ago, Netflix is clearly keeping an eye on the future with the introduction of the Open Connect content delivery network (CDN). Netflix is informing ISPs that they can choose to have Open Connect Appliances within their datacenters, or to peer with the Open Connect network at common Internet Exchanges; Netflix will provide either form of access at no cost to the ISP. We've heard about Netflix's efforts to team up with ISPs on bandwidth management before, it will be interesting to see if higher quality streaming or bundled packages become part of the deal. The official announcement is pretty light on details, but a piece at Streaming Media (linked below) highlights some of the more important strategic changes. No doubt, the outfit is expected to save small amounts per megabyte delivered, but when you're serving video on a massive scale, even pennies count.

engadget.com
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