2:49:28 Well, it's hard to say what happens. There's always a mystery with how that show goes. Well, I guarantee you'll be talking about Elon Musk! Don't make these claims and none of them ever come to be. Guaranteed. Elon Musk, he's so cool, he's a hero! He's a hero giving away his patents. That's so cool, he knows how to do it. Yes, awesome. He's great. I got plenty of things to say about that if that comes up. Oh, well get ready. What are you gonna say? I'm not gonna say. Oh, come on. Not gonna give it away. That's just mean. Okay, I'm gonna say that you know this guy wouldn't be doing that if he didn't know it was a loser. Exactly. I mean he's just not the type that's gonna give patents away. Why would you do that? Nobody in their right mind would do that. Why is he doing it? There's gotta be a reason. Yeah, well it's because he knows it's bullcrap. This is going nowhere.
2:50:23 In the packet inequality race, the Internet Association has responded to FCC Chairman Wheeler's announcement on internet interconnection with a letter. And it's one paragraph. A letter? A letter. The Internet Association... Do we belong to the Internet Association, John? Are you a member? I think I don't, but I think we should. I don't think so. Oh, you don't think we should? Uh, no. Okay, then we should. Well, I'll read the paragraph and then I'll tell you who the members are. The Internet Association believes that broadband internet access providers should aspire to settlement-free peering.
2:51:02 which ultimately benefits all stakeholders in the internet ecosystem. Settlement-free peering should be the industry norm. The Internet Association is focused on what's best for consumers and protecting an open internet free from... I'd start an ISP if they put this through. Free from the discriminatory or anti-competitive associations or actions by broadband gatekeepers. It is vital that internet users get what they pay for. Now, who do you think wrote that? Well, the... I don't know, it sounds like Netflix or one of these guys. Here are the members of the Internet Association. Airbnb, Amazon, AOL, eBay, Expedia, Facebook, Guild, Google, IAC, LinkedIn, Lyft, Monster, Netflix, Practice Fusion, Rackspace, Reddit, Salesforce, SurveyMonkey, TripAdvisor, Twitter, Yahoo, Yelp, Uber, Zynga, About.com, Ask, DitchNetwork.com, Flickr, Ha- People who send shitloads of data! Vimeo! Please.
2:52:00 Yes, it should all be free. Peering is peering. That means it's both ways. And people who are consuming Netflix are not sending a gigabyte of data back after they watch the movie. That's why the peering model is broken. You talked to a guy the other day. Yeah, I talked to Dane Jasper, gave me the rundown on what's going on. He's the guy who runs SonicNet. And he talks about peering, it's really a backbone thing. It's a backbone to backbone. It's got nothing to do with these guys like Netflix. Unless they wanna, you know, just horn in on, get really right on a pipe. Let me set this up. Let me set it up. Okay. This is regarding caching. John and I, we were talking about,
2:52:42 the inherent broken broken nature of Netflix because you can't use standard internet technologies to cash. And it turns out as a part of the interconnect or what is it, Netflix connect something or whatever. They do. Appliance, they have an appliance. They give you a cash box that you can put at your ISP. Right. And Dane has maybe a half dozen of them. You need more than one if you have a big ISP. And the cash box, in the case of the Netflix box, which is on the system, it's on the Sonic.net system.
2:53:19 And what it does is it saves the ISP the trouble of grabbing the material from the source and then dragging it across the line and giving it to you who asked for it. Instead, you go right to your local box, which is right there, which has 100 terabytes of the most popular material. Yeah, they even ship it pre-loaded. Yeah, it would save money. But it updates too. For example, when the new House of Cards comes out, they will load it once. By the way, Orange is the new Black. I'm now at episode 6. Meh. Not so impressed with this new season.
2:54:03 Oh good. Anyway, I condemn this show. Anyway, so that you have, and Google has one called the Google Global Cash, and they give it to these ISPs and they're free. And the ISP has to do, and the Google global cache is for YouTube videos. It's loaded with all the popular cat videos. The same thing, it's loaded over the line. And the ISPs have a bunch of these. Akamai has one, that box that they give to people. So these guys have all these boxes. Now the boxes cost money to operate. The boxes are free. The 100 terabyte drives and everything else is free to the ISP, and the maintenance is free to the ISP. It's taken care of. Ultimately, 600 watts per box, someone's going to maintain it, configure it. I mean, it's never free, but... He says it costs like a hundred bucks a month to run these things, and you have to make a decision whether it saves you $100 in transfer fees, like if you're a small ISP, it wouldn't be worth it.
2:54:58 or whether you need it at all. And so, the calculation has to be done. You have the boxes, you get a bunch of the boxes, whatever you do. And that's the way most of this is being done nowadays. And this is not discussed at all by the media or anybody else in between. And apparently what's happening, I still don't know the full story about what's going on at Comcast, but even though I've asked Comcast about this specifically, why don't they use the Google boxes? And I think they- Did Comcast say, we'll answer you Thursday afternoon between three and five? But I know what it is. It's like, Comcast is so big, they would probably need, I don't know, 500 of these boxes.
2:55:35 which I'm sure Netflix would be glad to provide, but running 500 of these boxes cost a lot of money. And so Netflix says, probably, look, we'd love to run these boxes, but we're not paying all this, we're not paying this fortune it's going to cost us to run these 500 boxes. You pay us some money and we'll put the boxes online. And I think that's what's really going on. Yeah, I think that, and I'm curious to know if Comcast has the Google boxes. Have the what? If Comcast does place the Google cash boxes? I wonder myself because my Google response on Comcast sucks. But ultimately, and this is just the problem, and then we can be done with this, Comcast currently charges, let's just call it Hollywood,
2:56:22 and that includes, you know, Bravo Network to ABC, NBC, CBS, HBO, Showtime, everybody, they charge per customer. So if you have the, if you're the E-network, you need to pay Comcast a dollar per subscriber to put your content on their network. With Netflix, here's Hollywood, and Hollywood is saying, oh, here's just a whole bunch of data to fill up your network and your routers, I'm giving you nothing. And that pretty much breaks Comcast's entire business model. That's why they don't want it. And that's why they're trying to work out the deal. And that's where we are right now. Well, they did work out a deal with Netflix, and that's where we are right now.
2:57:13 But this is not ending anytime soon, this little thing. And net neutrality and the government getting involved is not gonna change anything. If anything, it's gonna screw things up, especially for the small players. And I asked Dane about this, I specifically said to him or asked him, I said, now how does Netflix has a box right in your central office, right there, right on the pipe? And so when I'm a SonicNet subscriber and I want a Netflix movie, you're giving it to me with high efficiency because it's sitting there. It's really on, essentially on your servers. How is this fair? How is this net neutral? How does this, the other companies like Vudu and these other providers of movies, doesn't it put them at a disadvantage in terms of every bit is equal, every packet's equal?
2:58:01 He had to admit that yeah, it does and that's all on on these. Yeah on his own network, of course Yeah, and that's just the way it is And there's no getting around this because unless the voodoo and these other guys put these boxes in which they may or may not do or it may Not even be acceptable because they might not have enough traffic to make it worthwhile to pay for this exactly So anyway, this is a disargument this simplification of this of this issue Which we've argued on our show is not a simple issue at all It's a very complex thing with a lot of little twists and turns and things like these network appliances that nobody talks about. It all plays into it, but all I see is the movement to make the government get involved and now you're really asking for trouble. And that's what's gonna happen. There's no doubt in my, I've predicted this years ago. The FCC has always been going after the cable business. They wanna be able to tell cable companies no cussing and they'll do it.