Source: Lagrange Global Consulting Blog

Lagrange Global Consulting Blog Commentary on Article from USA TODAY "Netflix throttling video for AT&T, Verizon users"

Check out this article from USA TODAY:Netflix throttling video for AT&T, Verizon usershttp://usat.ly/1MpIbpk-First question...who didn't know this was happening? Of course Netflix throttles the connection...they've been doing it since the first rev of their mobile app. But "throttle" is the wrong word, and probably used in this context to connect it (erroneously) to Open Internet. See my explanation of throttling vs. 'quality selection' below...In general, streaming video companies like Netflix use quality selection to provide the optimal experience for every user considering their unique circumstances. This article tells me that Netflix has changed their algorithms. It's not "throttling" per se, but effectively Netflix is limiting AT&T and Verizon users to the lowest possible quality for all video streams and as a result, the stream requires less speed (this is how they're making the throttling claim) and thereby less data. It's no surprise, however, and it doesn't take a genius to figure out why they're doing it...to support TMO and Sprint, and in general to push the market to a "subsidized data" model such as the one they have with TMO (BingeOn).If AT&T and Verizon can show that the timing of Netflix's changes to their algorithms coincided with their BingeOn deal with TMO, I think they have a strong case for (at least) soliciting action from the FCC or (at best) a tortious interference claim. In any case, Netflix is going to have a hard time proving 1) they aren't flouting the Open Internet rules to promote deals such as the one they have with TMO and 2) their algorithms can differentiate between users on AT&T/VZW's network that have data caps vs. users that have been grandfathered into the unlimited data plans of old (I still have one). The latter requires access to AT&T/VZW's billing system which I seriously doubt they have.Bandwidth throttling - the intentional slowing of Internet service by an Internet service provider. It is a reactive measure employed in communication networks to regulate network traffic and minimize bandwidth congestion.Netflix note: If Netflix were throttling, they would be limiting the speed of the connection and therefore their algorithms would always choose the lowest quality data stream. I do not believe they are doing this as it would obviously violate Open Internet rules.Quality Selection - streaming video companies employ algorithms that incorporate factors such as connection speed, latency, received signal strength, interference, device capabilities, etc. to determine the highest resolution possible for each scenario. It's common knowledge that higher resolution video streams require higher speed connections and, from an engineering perspective, it makes no sense to deliver the same video quality to all users/devices under all circumstances...users with poor coverage would experience so much buffering that they would simply give up watching the video.Netflix note: I believe Netflix is restricting AT&T and Verizon users to the lowest possible resolution across the board, regardless of the speed of their connection. In effect, it's an engineering trick to circumvent Open Internet while at the same time moving the market in the direction of more "BingeOn" type deals.-

Read full article »
Est. Annual Revenue
$5.0-25M
Est. Employees
100-250
CEO Avatar

CEO

Update CEO

CEO Approval Rating

- -/100