Netflix, which streams nearly 1 billion hours of video monthly over the Internet, is shifting to deliver data directly to broadband service providers via its own content delivery network at no cost to ISPs.
Today the company delivers most of its video through commercial CDN providers, including Level 3 Communications. Moving forward, Netflix will connect to Internet service providers through its own Open Connect CDN, which will provide streaming video at no cost at locations selected by ISPs or through common Internet peering exchanges, vice president of content delivery Ken Florance wrote in a blog post Monday.
Google's YouTube, the largest video service on the Internet, has long operated its own CDN, Florance noted. "Given our size and growth, it now makes economic sense for Netflix to have one as well," he said.