Netflix (NFLX) Announces Open Content Delivery Plans, Move Could Hurt Other CDNs (AKAM) (LLNW)

June 5, 2012 8:06 AM EDT
Netflix (Nasdaq: NFLX) announced an open connect network for content delivery Monday evening.

Netflix said in addition delivering content through commercial content delivery network (CDNs) they are enabling ISPs to get Netflix video data from Open Connect, a single-purpose Netflix content delivery network they've established.

With the move, Netflix joins Google's YouTube in delivering its own content.

"Given our size and growth, it now makes economic sense for Netflix to have one as well," said VP of Content Delivery Ken Florance. "We'll continue to work with our commercial CDN partners for the next few years, but eventually most of our data will be served by Open Connect."

Like commercial CDNs, Open Connect will provide the Netflix data at no cost to the locations the ISP desires, or ISPs can choose to get the Netflix data at common internet exchanges.

The move from Netflix could be viewed as a negative for Akamai Technologies, Inc. (Nasdaq: AKAM) and Limelight Networks, Inc. (Nasdaq: LLNW).

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