Netflix Cutting Costs With New Content Delivery Network

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Moving to its own content delivery network is one of the smartest things Netflix has done in a long time. Hell, anything the company can do to cut down on the massive cost of content delivery will help. :eek:

Assuming an average bit rate of 2.33 Mbps, one hour of content would equate to 1.02 GB of data. Netflix probably pays the bargain basement price of 1.5 cents to deliver 1.0 GB of data. Using these numbers, if Netflix was streaming 1.0 billion hours of content a month they would be paying about $15.4 million a month in delivery fees or $184.2 million a year. If Netflix were delivering 1.0 billion hours of HD content a month at the maximum 5.18 Mbps rate, they would be paying $410.1 million a year in delivery costs.
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and they will still likely gauge their customers again for this new cheaper service
 
Open Connect will provide ISPs with free caches of Netflix data at any location an ISP chooses or the ISP can peer from a number of Netflix peering locations if it meets the general requirements.
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*MPAA mode* This is unacceptable! Our contract never stated you could create "copies" of the data we gave you. These caches require additional fees! Initiate litigation mode.
 
Commercial P2P. What a concept.

But P2P is a horrific, terrible, destructive creature according to the xxAA's ! There is no 'legal' use for P2P networks !

Oh, the drama.
 
ManofGod said:
Gouging? Where, I do not see any gouging?
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A DVD mail user who got mad when the cost of having both DVD and streaming became twice as expensive, however each service on its own is massively cheaper than renting or any cable service.
 
ManofGod said:
Gouging? Where, I do not see any gouging?
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Yeah; thats what I was thinking. I dropped my netflix sub a with the price hike, but it was really an excuse because there wasn't anything left that I wanted to watch on their stream, and nothing new was coming.

$8 a month is far from gouging, assuming there is content that you want to watch...



People need to stop hating for no reason.
 
Demon10000 said:
Yeah; thats what I was thinking. I dropped my netflix sub a with the price hike, but it was really an excuse because there wasn't anything left that I wanted to watch on their stream, and nothing new was coming.

$8 a month is far from gouging, assuming there is content that you want to watch...
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You're pretty much mirroring my handling of Netflix. I cancelled my service during the price hike, using it as a good excuse to end my subscription. In reality, there just wasn't much available that I wanted to watch. Their selection of BBC drama is pretty slim and though I've renewed my subscription, I don't think I'll maintain it for more than a month or two. It's not really very enjoyable to sit around as a passive audience just viewing content. I've been spoiled by stuff that allows me to not just observe, but participate so television and movies don't play much of a role in my life.

Really though, at $8 per month, even if they don't pass on the savings to their customers, they're still very affordable.
 
pcjunkie said:
So they are going to do the same thing Akamai does?
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You know, Akamai does more than just operate a Content Delivery Network right? But yes, this is the same thing all the CDNs do, it's just cheaper to do it yourself if you have enough traffic.
 
Bigbacon said:
doesn't change the lack of good content
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as long as this isnt used to hike executive compensation, its actually more money to leverage more content. if they do the right thing, (which few large companies do), but i have some faith left, we may see an increase in titles.

remember netflix is not solely responsible for the lack of content, the content owners are at war with them, they want their money, but somehow think that they are lowering their profitability.

when they split the services, i dropped the disk service, since i often had a dvd sitting on my table for a week or more at a time. i tried hulu, but they dont allow many of their best shows to be played off streaming devices, i dont want to watch tv on my computer, so screw them. plus $70 for basic cable is just not worth it. so i live off netflix, amazon and my own collection.
 
I thought they were cutting their streaming costs by only offering junk that no one wants to watch.
 
Netflix needs most is new shows. They need to partner up with some networks, like HBO/Showtime/Starz , I mean the actual networks not just for "movies." Where people can watch current, brand new episodes of shows the same day they come on hbo and what not.

The main problem with netflix streaming is lack of new content. They hardly ever get anything new, a ton of it is crap films that no one heard of/wants to watch with a little being good decent movies/shows.



On top of this if they ge ta show or a film....GET ALL OF THEM, nothing is more annoying then watching an episode of a show and enjoying it,t hen finding out oh netflix only has season 1 , 5, and 6 of a 9 season show! That's great, grand!

Smae with movies, when you watch one, then want to watch the sequel but they don't have it, or even worse, whent hey have a SEQUEL BUT NOT THE ORIGINAL MOVIE!!!
 
Also forgot to say, one good thing they did recently was produce an original show, Lilyhammer. It's actually a decent show , like a more comedic Sopranos (stars Steve Van Zhast ).

If they can get to the point where they can build up more original shows that are on par quality wise with HBO/Showtime/FX/AMC I think it will help them a ton. Having multiple netflix only shows that have multiple seasons.

Currently they are working on another original show, but they need to get to the point where they are able to have more then one and have it last longer (IE regular seasons).
 
Stiler said:
Netflix needs most is new shows. They need to partner up with some networks, like HBO/Showtime/Starz , I mean the actual networks not just for "movies." Where people can watch current, brand new episodes of shows the same day they come on hbo and what not.
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hbo already stated they would never partner with netflix, unless they sold themselves at a premium price.. i think it was like $40 or someshit.

they need to prove profitability, but hollywood seems intent on making millions selling crap and finding someone to blame when that crap doesnt perform.

i agree on the original content, if they can build up a few good shows, and increase their arsenal, they could get real talent from the other networks. then perhaps sell themselves to the current content owners.
 
Good, hope they can get back to where they were. Streaming is still great for me, no they don't have a ton content I want, but there selection of kids shows for my kids is fantastic. I haven't had cable for 6 months now.
 
Yep. The networks are going to have to accept this. Consumers aren't willing to pay $50-100 a month for TV anymore. We aren't either. No cable for the last 3-4 months... and not missing it.
 
well thats why netflix is 8 bucks and a decent cable package with HBO is 80+

if netflix had modern content they'd have to charge just like cable companies.
 
Bigbacon said:
doesn't change the lack of good content
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That is the fault of the studios. They are all a day late and a dollar short when it comes to working out a plan to monetize internet sales. Now that Netflix has, they are all being idiots, again, and talking about each having their own service with their own content.

Which means a half dozen more Netflix's each charging 15-20 bucks a month, with only a couple blockbusters and mostly older or total shit filing out the rest of their service.

Watch them act all indignant when we don't all jump on board and pirating continues unabated due to their complete and utter stupidity. Then they will use it as proof to Congress that the market can't survive with piracy and we will eventually have our War on Pirates.

I'm not joking. We had our War on Drugs, our War on Terror, and next up is a War on Pirates.

You heard it here first. Remember this post in a decade or so.
 
Naieve said:
That is the fault of the studios. They are all a day late and a dollar short when it comes to working out a plan to monetize internet sales. Now that Netflix has, they are all being idiots, again, and talking about each having their own service with their own content.

Which means a half dozen more Netflix's each charging 15-20 bucks a month, with only a couple blockbusters and mostly older or total shit filing out the rest of their service.

Watch them act all indignant when we don't all jump on board and pirating continues unabated due to their complete and utter stupidity. Then they will use it as proof to Congress that the market can't survive with piracy and we will eventually have our War on Pirates.

I'm not joking. We had our War on Drugs, our War on Terror, and next up is a War on Pirates.

You heard it here first. Remember this post in a decade or so.
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I give it November 7th of this year.
 
Naieve said:
That is the fault of the studios. They are all a day late and a dollar short when it comes to working out a plan to monetize internet sales. Now that Netflix has, they are all being idiots, again, and talking about each having their own service with their own content.

Which means a half dozen more Netflix's each charging 15-20 bucks a month, with only a couple blockbusters and mostly older or total shit filing out the rest of their service.

Watch them act all indignant when we don't all jump on board and pirating continues unabated due to their complete and utter stupidity. Then they will use it as proof to Congress that the market can't survive with piracy and we will eventually have our War on Pirates.

I'm not joking. We had our War on Drugs, our War on Terror, and next up is a War on Pirates.

You heard it here first. Remember this post in a decade or so.
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The War on Drugs didn't really turn into much of anything. The War on Terror was just spin doctoring to keep public support behind getting our own people killed in regional conflicts. I'm guessing that if there is a War on Pirates, it will be more like the War on Drugs version where we don't really change much of anything, but simply say it so that the average low-intellect person can encapsulate a range of existing legal mechanisms into a chunk they can relate to and feel they comprehend.
 
SkribbelKat said:
The War on Drugs didn't really turn into much of anything. The War on Terror was just spin doctoring to keep public support behind getting our own people killed in regional conflicts. I'm guessing that if there is a War on Pirates, it will be more like the War on Drugs version where we don't really change much of anything, but simply say it so that the average low-intellect person can encapsulate a range of existing legal mechanisms into a chunk they can relate to and feel they comprehend.
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war on drugs goes further then you imagine, but just think about the murders around the borders, the violence pushing up from south america to mexico. but thats for another thread.

but look forward to more tax dollars wasted, courts backlogged, new government agencies formed. bureaucratic waste, not that we arent seeing it already.
 
FurbySlayer said:
war on drugs goes further then you imagine, but just think about the murders around the borders, the violence pushing up from south america to mexico. but thats for another thread.

but look forward to more tax dollars wasted, courts backlogged, new government agencies formed. bureaucratic waste, not that we arent seeing it already.
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Hmm, don't get me wrong. I'm not saying that no one is doing anything. I would think that these sorts of things would happen even if we didn't call it something specific.
 
SkribbelKat said:
The War on Drugs didn't really turn into much of anything. The War on Terror was just spin doctoring to keep public support behind getting our own people killed in regional conflicts. I'm guessing that if there is a War on Pirates, it will be more like the War on Drugs version where we don't really change much of anything, but simply say it so that the average low-intellect person can encapsulate a range of existing legal mechanisms into a chunk they can relate to and feel they comprehend.
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.....The War on Drugs is costing us a SHIT LOAD of money every year, billions of dollars down the tube and over a trillion total. I'd hardly say that's "not much of anything."
 
atticus14 said:
well thats why netflix is 8 bucks and a decent cable package with HBO is 80+

if netflix had modern content they'd have to charge just like cable companies.
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HBO alone is more then netflix costs, so yeah it wouldn't make sense for netflix to have HBO content as then why are you paying more for HBO with your provider?
 
I've been using Netflix almost solely for watching Battlestar and the various Star Trek series. Once I'm done with those, I really don't see myself continuing the sub, mainly because their movie selection is horribly, horribly bad. It was OK when they were partnered with Starz, wtf happened to that anyway?
 
Stiler said:
.....The War on Drugs is costing us a SHIT LOAD of money every year, billions of dollars down the tube and over a trillion total. I'd hardly say that's "not much of anything."
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Hmm...yeah, but it would cost the same if it was a bunch of individual activities not lumped under the same title.
 
atticus14 said:
well thats why netflix is 8 bucks and a decent cable package with HBO is 80+

if netflix had modern content they'd have to charge just like cable companies.
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I disagree.

HBO by itself is what; $10-15? It's your cable provider that charges you a boat load for:
* cable
* digitial cable
* HD
* 100 channels that you aren't going to watch

If HBO were to break apart from the cable companies, or sell content to netflix... things might get cheaper. As of right now, premium channels have this stupid requirement of having cable.
 
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