Larry Seltzer with more details on the Netflix-Verizon traffic feud.
Verizon argues to the WSJ that problems arise when a service puts out far more traffic than it receives, as would be expected of a streaming video service. Netflix recently announced that they have over 44 million members and it is clear that streaming video consumers a large percentage of Internet bandwidth.
So, who should pay for the disparity?
Verizon argues that such services should pay more to the companies that deliver their traffic. Netflix is arguing that ISPs should hook up to Netflix’s own CDN without any additional compensation. Both Netflix and ISPs argue to the WSJ over how efficient Netflix is at managing its own traffic.
This is tougher than it seems. Everyone pays someone to connect to the internet; either to receive traffic or to send traffic. If too much traffic hits one large network provider what can they do to protect their network and customers?