The Bay Area gets the European internet exchange model Netflix hopes will spread

Gigaom

The Amsterdam Internet Exchange (AMS-IX) said today that it’s establishing an internet access point in the San Francisco facility of Digital Reality, a collocated data center provider. With the new point of presence (POP), AMS-IX is bringing its European internet exchange model, one that Netflix supports, to the Bay Area.

Last December, [company]Netflix[/company] became the first customer of AMS-IX’s New York facility, which was a big deal because that signaled the rise of the European internet exchange model in the U.S., something Netflix has supported.

In this type of model, the internet exchanges—the places where the networks of ISPs, content providers, telecoms, and others congregate to swap traffic—are owned by all the members that participate; this could possibly account for the reason why European cross-connect prices are way lower than what you see in the U.S. in which data center owners like Equinix or the ISPs can dictate the…

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