Federal Internet Law & Policy
An Educational Project

Dont be a FOOL; The Law is Not DIY

- Video
- Backbone Policy

- Level3
- Comcast
- Cogent


Netflix was founded in 1997 as a video-delivery via DVD through the mail service. It first shipped DVDs in 1998, and went public in 2002. By 2010, Netflix was reportedly spending $700 million to transmit videos through the US Postal service. [Lawler] Netflix has seen steady growth in customers. [Balakrishman]

In 2007, Netflix introduced its video-delivery via streaming over the Internet service. In 2010, streaming video was offered as a stand-alone service. Netflix was made available to TV screens via boxes such as the Roku box and XBox. Netflix's online streaming service experienced explosive growth, while DVD only subscriptions have declined. [Netflix History] [Florance Declaration at 8] [Kyncl]

In 2007, Netflix spun off a hardware project that it had been developing in order to deliver videos to a black box in the home. Reed Hastings, CEO of Netflix, did not want to complicate Netflix's relationship with other hardware developers. "'I want to be able to call Steve Jobs and talk to him about putting Netflix on Apple TV,'” recalls one high-level source. “‘But if I’m making my own hardware, Steve’s not going to take my call.'” [Fast Company 1.23.13] The hardware project became the Roku box.

In 2010, Netflix reported a "postage and delivery" cost of $694 million; that number has declined steadily since Netflix split DVD and streaming subscriptions. The number of DVD subscriptions has likewise decreased from 11 million in 2011 to 7 million in 2013. [See Reuters, Netflix Gets Unfair Postal Advantage (2013)]



Internet Interconnection Disputes

See also Comcast / TWC Merger.





  • Level 3 (Netflix) / Comcast
  • Netflix migrates from Akamai (which has a paid peering relationship with Comcast) to Level 3 (which has a settlement free peering relationship with Comcast) for Comcast traffic

Open Connect CDN

See Content Delivery Networks

Who interconnections with Netflix Open Connect?

Open Connect Partners Peered?
AT&T Paid
Comcast Paid
TWC Paid
Verizon Paid
Centurylink Paid




Open Internet