Video Breakthroughs

Today, Netflix announced that they have been actively working to build out their own network of caches inside ISP networks and have officially launched the "Netflix Open Connect Content Delivery Network". With this offering, Netflix aims to lower their CDN costs, rely less on third party CDNs, provide higher quality streaming and most importantly, give network operators more control over the video that flows through their pipes.

To support the launch of their CDN, Netflix has a new website at openconnect.netflix.com which gives ISPs more details on the hardware and software design of Netflix's caches, details on how ISPs can peer with Netflix and access to a deployment guide. While many might compare what Netflix is doing with their cache deployment to what Google has been doing for years, the big difference is that Netflix is giving ISPs control over the caches, allowing them to adjust the volume of traffic flowing through their network. This is a smart move on Netflix's part as many ISPs don't view Google caches as being friendly because once placed inside the operators network, they can only be controlled by Google.

Today, Netflix announced OpenConnect, a way for Internet Access providers to extend Netflix own CDN.

This approach is very much in line with the trend that Jet-Stream predicted: Content Publishers want to be in full control of their workflow chain, right down to delivery.

Next to telco CDNs, publisher CDNs are yet another potential threat to Internet CDNs whose best effort infrastructure simply does not live up to the expectations and requirements from premium content providers.

Maybe even a bigger threat since this is a massive signal to the CDN industry that content publishers are not just technically able but also have the strategy to directly work with access providers. This is their customers saying: let's cut out the man in the middle.

READ OpenConnect webpage outside US : http://ip.fi/%7Ekajtzu/openconnect%20site%20dump.pdf