Rather techical about Netflix CDN. Read till the end for plain English.


[h=1]From about a year ago. Why is it interesting? It allows netflix to offet Super HD streaming content now.

Netflix introduces its own CDN, Open Connect Network, to give ISPs more control[/h]
As the company's business shifts from by-mail to instant gratification, there are also decisions that need to be made about delivery. Despite signing a three-year deal with Limelight and Level 3 right around eighteen months ago, Netflix is clearly keeping an eye on the future with the introduction of the Open Connect content delivery network (CDN). Netflix is informing ISPs that they can choose to have Open Connect Appliances within their datacenters, or to peer with the Open Connect network at common Internet Exchanges; Netflix will provide either form of access at no cost to the ISP. We've heard about Netflix's efforts to team up with ISPs on bandwidth management before, it will be interesting to see if higher quality streaming or bundled packages become part of the deal. The official announcement is pretty light on details, but a piece at Streaming Media (linked below) highlights some of the more important strategic changes. No doubt, the outfit is expected to save small amounts per megabyte delivered, but when you're serving video on a massive scale, even pennies count.

So what does all that mean?

Instead of going from your PC/TV to Netflix, you go to a local cache of Netflix content accessed by your ISP in your local area. Saves alot of data flow on the internet backbone since much of Netflix's content is accessed locally.
This was actually always true as Netflix employed 3rd party caches. but now they will have their own and they are giving your ISP direct access.
So now the ISP will have to find some other excuse for charging more for data.