Looked at the host serving my Netflix streams today and noticed something new.
No clue if money is changing hands or not, and the return path is what actually matters, but it appears that Comcast and Netflix have reached some sort of agreement regarding direct interconnection.
$ traceroute -a 198.45.63.164
traceroute to 198.45.63.164 (198.45.63.164), 64 hops max, 52 byte packets
(hops 1-2 redacted)
3 [AS33651] 76.21.8.1 (76.21.8.1) 11.174 ms 14.215 ms 20.283 ms
4 [AS33287] te-7-2-ur01.sffolsom.ca.sfba.comcast.net (68.85.103.21) 10.612 ms 12.468 ms 9.935 ms
5 [AS33651] te-1-14-0-6-ar01.sfsutro.ca.sfba.comcast.net (68.86.143.50) 10.932 ms 14.374 ms 16.179 ms
6 [AS7922] he-3-8-0-0-cr01.sanjose.ca.ibone.comcast.net (68.86.94.85) 24.146 ms 14.741 ms 15.096 ms
7 [AS7922] he-0-11-0-0-pe03.11greatoaks.ca.ibone.comcast.net (68.86.85.238) 16.531 ms 16.816 ms 15.605 ms
8 [AS7922] 173.167.57.102 (173.167.57.102) 12.722 ms 12.348 ms 13.481 ms
9 [AS2906] ipv4_1.lagg0.c070.sjc002.ix.nflxvideo.net (198.45.63.164) 15.250 ms 17.128 ms 13.105 ms
It looks like this is part of Netflix's open connect project. The open connect project is a self rolled CDN by netflix. As part of this project Netflix has deployed server servers in the hundreds of terabytes size in strategic location around the would. These servers contain between 60-90% of the data that would be used for a particular country. These devices either live in the ISP like a rack at Comcast or live in a internet exchange where multiple ISPs can connect to the same switch as the Open Connect deceives.
This is beneficial in 3 ways:
http://blog.netflix.com/2012/06/announcing-netflix-open-connect-network.html