Netflix wants a dedicated internet service to compete with established ISPs like Comcast, Verizon and AT&T, according to sources close to the company.
Netflix wants its own service to rival Verizon’s X1 Internet service.
The company’s chief content officer, David Wells, told a conference call that the company is “seriously considering” the idea of building its own “internet service,” which could include a data center, data center infrastructure, or even fiber optics.
Netflix will not disclose how much the company would charge for the service, which it says would be “competitive with a major broadband provider.”
Wells said Netflix’s business model is to “be the internet service of choice for millions of people,” and that Netflix is “committed to being the internet provider of choice in the United States.”
Wells didn’t say how much Netflix would be willing to pay for the network, but sources told Recode that Netflix would need a substantial amount of capital.
“This is something that we are seriously considering,” Wells said.
“It’s not a decision that we’ve made in isolation, but I think we’re in this position where we have a compelling business case to do something different.
It’s not like we’re doing this because we’re going to do a big merger or buy a billion-dollar company.
It just feels like it’s something that is really important to do.”
Wells told the conference call the company will consider a number of options, including “building a fiber optic network, a cloud service, and a data centers.”
He said Netflix believes that “the best path forward is for us to build our own infrastructure.”
He also said that Netflix has “very high expectations” for its own infrastructure.
“I would hope that this is something we would build out, as opposed to doing this as a private company,” Wells added.
We’ve spent a lot of money on building our infrastructure, and we have very high expectations for it. “
The only thing that we can control is how much money we invest in this.
We’ve spent a lot of money on building our infrastructure, and we have very high expectations for it.
We want to get it right.
If we’re wrong, we’re right.”
Netflix said it will release a formal response to Recode’s questions about its plans at the end of the month.