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As Internet service providers will extract more fees from Netflix, the company continues to invest heavily in its proprietary “Open Connect” network, which allows Netflix to connect its servers directly to those of Internet service providers (via peering). Since most users upgrade their Internet connections to faster broadband in order to watch video, are the incentives of broadband providers aligned with Netflix, or will the broadband providers continue to extract significant value from this industry? Apply a five forces analysis.

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