Netflix held a press conference on the 4th and expressed its position on the controversy over network usage fees. Netflix reiterated its previous position to focus on reducing traffic through ‘Open Connect’. Instead of paying a monetary fee, Netflix is currently suing SK Broadband for a technical problem.
Netflix, which is in conflict with ISPs (domestic Internet service providers) over network usage fees, said it will focus on ways to reduce traffic through “Open Connect.” This is a repeat of Netflix’s existing position that it will contribute to network usage fees in a technical manner instead of paying economic costs.
OCA reduces traffic by at least 95%…Repeat “Technical Solution”
Dean Garfield, vice president of policy at Netflix, held a press conference in Dongdaemun Square Seoul, Jongno-gu, Seoul on the 4th and said, “We will cooperate with ISPs in a way that effectively provides Netflix streaming but does not burden the network.”
“We have invested as much as 1 trillion won so far to create OCA (Open Connect Alliance), our own CDN (content transmission network),” he said. “Through this, we have reduced network traffic from at least 95% to up to 100%. Over the past year, ISPs around the world have saved 1.41 trillion won through OCA, it added.
OCA is a technology developed by Netflix 10 years ago and can be called its own CDN. Netflix claims that using OCA, data is delivered directly to the ISP, so there is no relay access fee. In addition, it can be installed anywhere inside the ISP network, so there is no additional cost even if the content is received from a long distance.
Dean Garfield, vice president of policy at Netflix, is hosting a “Netflix Media Open Talk” on the 4th at JW Marriott Dongdaemun Square Seoul. “Most Internet users in Korea pay Internet usage fees based on 200MB per second,” said Vice President of Netflix, adding, “If you use OCA, the traffic caused by Netflix users is 3.2MB per second even at peak time.” Even assuming the most traffic, Netflix accounts for 2% of the average Internet fee.
Vice President Dean also stressed that in addition to OCA, additional technologies are being developed to establish a stable traffic environment. Typical examples are the ability to encode the same video file into multiple versions according to the bandwidth of various viewing environments, and the method of delivering videos of the same quality through less and less bandwidth by improving the compression method.
“I’m not paying any network usage fees.””OCA is an ISP’s choice”
As Netflix repeated its existing position to bypass the network usage fee problem due to technical problems, questions continued at the press conference on Netflix’s position on the payment of network usage fees and reverse discrimination issues.
Asked about the discrimination issue, saying Netflix does not pay network usage fees to overseas ISPs and does not pay network usage fees to Korea, Vice President Dean said, “We are building commercial partnerships based on marketing or financial transactions on set-top boxes.”
Also, it is not true (to pay for the network usage fee). I don’t talk about things that aren’t true in public, he said. “If there is an ISP who receives network usage fees, wouldn’t you show up?”
When it was pointed out that Disney, which is planning to release Disney Plus in the domestic market, and Apple, which released Apple TV+, are paying the cost to CDN, some CPs use CDN to provide content. However, Netflix’s position is a little different.
“Netflix has created its own CDN, OpenConnect, in order to create an ecosystem called the Internet,” he said. “Disney and Apple each made the most reasonable choice for their companies.”
“Each ISP can choose whether to use open connect or not,” he said. “Netflix continues to innovate while providing information and insights.” We are waiting for the ISP to choose open connect,” he added.
SKB and lawsuit, KCC’s “passing” isn’t it…”Hope to cooperate”
Dean also mentioned the ongoing trial of network usage fees with SK Broadband. Netflix is suing SK Broadband for refusing to pay network usage fees. Although it recently lost the first trial, Netflix filed an appeal against SK Broadband and the second trial is underway.
“Netflix wants to cooperate with all Korean ISPs, and SK Broadband is included here,” Vice President Dean said. “I want to sit down and discuss with SK Broadband for co-prosperity.”
“We respect Korea’s legislation and justice,” he said, adding, “Each country has no intention of using procedures in an advantageous way to abuse something unclear.”
SK Broadband originally filed a financial application with the Korea Communications Commission to mediate negotiations on network usage fees. However, Netflix rejected this and took legal steps, sparking controversy over KCC passing.
However, he said, “There is no law on network usage fees in Korea. “It’s like that all over the world,” he said, adding, “We’ll follow the trial process well, adding.
Finally, Vice President Dean said, “I deeply sympathize with the importance of accompanying Korean creative ecosystems as well as various domestic partners,” adding, “Netflix will continue to work with ISPs and other related industrial ecosystem partners to provide the best consumer experience.”
Source: www.nocutnews.co.kr