Its a private netflix network ( allowed for public use) using other private networks... it violates net neutrality for starters ...gives netflix an unfair advantage
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CDNs do not violate NN as they don't actually result in the prioritization of one kind of traffic over another. Moving the data closer to the client is not a violation of NN. This is a false talking point invented by lobbyists who don't understand how IP networking works. Anyone who utilizes a CDN is improving the performance of their application for certain, but, at the same time, making life better for everyone else using the Internet by reducing backbone utilization. It also improves average packet latency on the local ISP network, something every ISP should want as it reduces memory utilization on their routers.
Also, peering with Netflix's network, which uses public AS number AS2906 is not a private network. That is the public Internet:
Netflix | Peering With Open Connect
Fairness can be difficult to ascertain, but I can see why some ISPs who also have video operations (Comcast, Charter, AT&T, Verizon, etc.) might view it that way since they are vertically integrated megacorps and have a hard time differentiating their telecommunications business from their content and [declining] video delivery businesses. Their viewpoint is Netflix is using all their bandwidth and isn't paying them for it, but the reality is the ISP customers are the one paying for and using the bandwidth. Netflix is not initiating the communications -- the ISP customer is. That puts the onus on the ISP to deliver the traffic, as requested, to their customers in a reliable, performant fashion, not matter who the traffic is coming from.
Netflix offering the OpenConnect CDN servers for free (minus installation) comes out looking like the good guy because it benefits everyone involved. Yes, Netflix competitors might not have the same advantage, but they easily could offer the same thing, especially as large parts of the OpenConnect project are open source.
I will say how interesting it is that so many cable companies who didn't want to be a "dumb pipe" are now getting most of their revenue from doing just that, and they seem pretty happy about it.