AT&T Plans To Launch Internet Video Service 43
An anonymous reader writes "AT&T officially announced on Tuesday their intention to launch a Netflix-like service in collaboration with an investment group run by a former Fox president. AT&T is following in the footsteps of Verizon, which partnered with Redbox in 2012 to offer the same type of service, and like Verizon, is also still negotiating with Netflix on payments to not throttle Netflix traffic."
Net Neutrality? (Score:2, Informative)
I have no reason to believe they won't give this full bandwidth while throttling the competition, giving themselves the edge they need to succeed.
Re:Netflix fucked up when they paid (Score:4, Informative)
AWS is only the authentication part. the content is spread around their leased data centers and colo sites
i did some googling and since 2008 netflix used contract with limelight for CDN and lots of third party peering services. as well as transit from cogent and L3. problem is they always cut profit thin deals where the value for the provider was mostly learning to deal with the traffic. even limelight said they made almost no profit on the netflix deal.
instead of paying more in network costs like HBO and everyone else does netflix came out with their own CDN and wanted ISP's to host them for free. unlike the current arrangements where CDN's pay the ISP's for hosting and bandwidth. and netflix started super HD right at the time they screwed up their distribution system and went on their PR parade saying how bad all these ISP's are.
i don't know what the deal with AT&T and Verizon is but with comcast the difference is netflix is paying comcast directly instead of the other services they used to
pay. win/win for everyone and cutting out the middlemen
and if you look at netflix's financials their tech costs are less than 1/10 of revenues and content costs are 3/4 of revenues. their problem is they are just a low margin middle man for content and make very little profit