Explain It in 30 Seconds
Streaming a large video file from one distant central server to every viewer would create unnecessary network traffic.
Open Connect moves popular Netflix content closer to viewers.
Netflix content
↓ copied to Open Connect appliances
server near member / inside ISP network
↓
member presses play
↓
video travels a shorter network pathNetflix partners with more than 1,000 ISPs to localize substantial amounts of traffic. [S19]
Why Netflix Built It
Netflix began Open Connect around 2011 as streaming traffic grew. [S20]
The business problem was straightforward:
more streaming members
×
high-bitrate video
=
enormous data deliveryIf every stream traveled through long-distance internet transit, costs and congestion could increase.
Netflix therefore designed a delivery system around proactive caching and ISP cooperation.
The Two Main Components
Embedded Open Connect Appliances
Qualifying ISPs can deploy Netflix Open Connect Appliances inside their own networks.
The appliances store Netflix content locally.
Netflix provides the appliances to qualifying partners at no charge. [S19]
Settlement-Free Interconnection
ISPs can also connect directly to Netflix Open Connect infrastructure through peering arrangements.
This can reduce reliance on third-party internet transit.
Why Caching Works Especially Well for Netflix
Netflix knows its entertainment catalog in advance.
Much of the content can be placed on servers before viewers request it.
That creates a proactive model:
predict / schedule popular content
↓
pre-position files
↓
serve locally when requestedThis is different from a system that has to fetch every item only after a request appears.
Open Connect vs. Cloud
This is one of the most important distinctions.
Netflix uses cloud infrastructure for functions such as:
- business logic;
- databases;
- analytics;
- recommendations;
- transcoding;
- scalable application services.
But Netflix video delivery is handled through Open Connect. [S21]
So:
CLOUD
runs much of the Netflix application
OPEN CONNECT
delivers the video bitsThey are complementary, not the same system.
Why ISPs Participate
Netflix traffic can be a meaningful part of consumer broadband usage.
Placing content inside or near an ISP network can reduce:
- transit traffic;
- congestion;
- long-distance delivery.
The ISP still provides:
- rack space;
- power;
- connectivity;
- network configuration.
Netflix provides:
- appliances;
- architecture support;
- monitoring;
- ongoing content fill and maintenance. [S19]
Why Open Connect Matters Economically
Streaming quality affects member satisfaction.
A service that buffers or starts slowly can reduce perceived value even if the content itself is excellent.
Open Connect therefore helps protect:
playback quality
↓
member experience
↓
engagement
↓
retentionIt also reduces the need to purchase all video delivery through third-party CDNs.
Scale
Netflix has described Open Connect as a global system using embedded and peering deployments around the world.
The exact appliance count changes over time.
The more stable strategic point is that Netflix built specialized distribution infrastructure because generic delivery alone was not efficient enough for its scale.
Open Connect and Live
Live programming is a harder delivery problem.
On-demand content can be pre-positioned.
Live content is generated in real time.
That means Netflix's growth in live programming increases the importance of resilient delivery architecture even when the caching model differs.
What Open Connect Depends On
- ISP cooperation;
- data centers;
- network peering;
- appliance operations;
- content encoding;
- routing;
- broadband access.
Why It Matters to Netflix
Open Connect is a good example of a broader Netflix pattern.
The company enters infrastructure when infrastructure becomes strategically important to product quality.
It did not build a general-purpose CDN for the whole internet.
It built a network optimized for Netflix.
What Most People Misunderstand
"Netflix runs everything on Open Connect."
No. Open Connect is mainly video delivery, while cloud systems run much of the application layer.
"Open Connect replaces the ISP."
No. It works with ISPs.
"Netflix has to stream every title from California."
No. Content is localized closer to users.
Common Questions
When did Open Connect start?
Netflix began the initiative around 2011. [S20]
Do ISPs pay for Netflix appliances?
Netflix says qualifying embedded appliances are provided at no charge, while the ISP provides local infrastructure such as space, power and connectivity. [S19]
Is Open Connect a CDN?
Yes. Netflix describes it as its content-delivery network.
Evidence
Connected Entities
- Netflix
- Netflix Streaming
- Netflix Live