Netflix has announced that it is building out its own dedicated content delivery network called Open Connect. Despite some missteps last year, the company has seen continued growth, recently surging past Apple to take the lead in the online movie market.
Netflix VP of Content Delivery Ken Florance posted the announcement today, saying that the company has reached a point in size and growth where it makes more economic sense to create its own CDN. He noted that the world's other major internet video provider, YouTube, has long had its own CDN.
The transition should help Netflix save money by streamlining its own data, while also improving its customers' viewing experience. Similar to commercial CDNs, Open Connect will provide Netflix data at no cost to the locations that ISPs desire, or allow access via a common Internet exchange.
Netflix will continue to use its commercial CDN partners for the next few years, but plans to eventually transition most of its data to its own Open Connect network. About 5 percent of Netflic data is already served through Open Connect.