Last week, Netflix launched its Super HD and 3D streaming services, available only to customers with certain Internet Service Providers (ISP). The services come at no additional cost to Netflix subscribers who are, naturally, thrilled with the announcement. The ISPs, on the other hand, aren’t as ecstatic.
According to Slashgear, Time Warner Cable (TWC) is claiming that Netflix is engaging in “discriminatory behavior.” The reason TWC is hot under the collar: Netflix is requiring ISPs to sign-on to its Open Connect delivery system before giving them access to the new high-resolution content. Open Connect essentially strings a direct line between Netflix and ISPs, advantageous in that in that it eases congestion and reduces the cost of streaming the high-bandwidth material.
Still, TWC says its network can handle the task just fine, thank you very much, and is contending that it’s wrong for Netflix to withhold content from its customers. Netflix, however, views an opt-out on Open Connect as a deal breaker, and continues to encourage all ISPs to get on board with the program – which it insists involves no extra cost to the provider.
Will TWC content itself with voicing its displeasure? Or is this public foul-crying a harbinger of legal action? Let us know what you think in the comments below.
As a TWC customer, I can tell you that they never do anything for their customers; they are only interested in increasing monthly revenue. The network may be able to handle it but the POS DVR box can’t handle today!
Confirmed: TWC has the worst product and customer service I ever seen in tele business.
When I wrote Time Warner Cable telling them my desire to watch Super HD and 3D content via Open Connect, I got the following response “Thank you for your request. Please note that, we do not support Netflix.” Unbelievable
I am a TWC so cal customer. Big arrogant companies die a slow death usually. See blackberry and see Kodak and see the big american auto companies (who would have died had it not been for bailout) etc… I already looked at google fiber and now I can’t wait. If they can roll out to California quickly then I think TWC Internet division will die a FAST death. TWC, you can keep more people happy and we won’t leave when a good alternative becomes available (and it will!) or you can choose to upset a large % of customers who will show you no loyalty because you showed us no respect. This is the future. Do you want to participate?
Whoa! Huge correction. The title shouldn’t read ‘Time Warner: Netflix’s insistence on Open Connect is “discriminatory”’. Rather it should say ‘Time Warner *Cable*: Netflix’s insistence on Open Connect is “discriminatory”’
Time Warner Cable was divested from Time Warner around the same time that AOL was cut loose. The only relationship today is that TWC has a license to the name “Time Warner” – probably because they were too cheap to repaint their trucks after gaining independence.
That said, I hope this is a sign of legal action ahead. It’s particularly interesting that TWC (of all companies) would chose to throw of the word “discriminatory”. Open Connect is frikken’ *FREE*. All they have to do is take it.
Of course, this is really about Network Neutrality.
TWC, like many overgrown ISP’s doesn’t want to be neutral. We saw with the Netflix/Level3/CableCo fiasco that they don’t like neutrality because they want to charge a toll to content providers for inbound data that was actually requested by their home and business users (who should really be wondering what their monthly bandwidth-priced subscription tiers are for if they claim that Netflix and other services are taxing their network – that they now claim in this story is perfectly capable of handling the high bandwidth streams).
By publicly disclosing their bandwidth charge for Open Connect (again, that’s free) Netflix is making a brilliant attempt to force TWC, Comcast, Verizon, etc to disclose their true intentions. This is essentially zero cost to the ISP. And Netflix themselves has gone through the effort and expense of building out server cages in data centers that TWC and many other ISP’s are already in. The super simple ISP requirements and data center locations are published for all (including the good folks at the FCC) to see at https://signup.netflix.com/openconnect/guidelines .