Just read David Pogue’s recent article on the Vudu set-top IPTV box with interest, as I’ve been doing some research writing on just this subject recently.

A good first-hand user-level review of the device - however, he neglects to mention the really unique thing about Vudu, which is the peer to peer data transfer model.  Why is this so important?  Because residential internet connections are heavily optimized for downstream performance at the expense of upstream - and when I say heavily, I mean heavily (downstream speeds can easily be five to six times faster than upstream). The thinking (correct, as it happens, until recently) is that most users are browsing web pages and streaming youtube from centralized servers (downstream traffic) rather than hosting any meaningful amount of data (upstream traffic). Not so with peer to peer technology, wherein each client is also a data host (or mini-server, if you will) visible to all the other clients using the system at the time.

So to the extent Vudu becomes popular, it’s going to impact the residential ISP’s soft white underbelly, their Achilles heel - upstream bandwidth.  As an indication of just how concerned residential ISPs are about this kind of thing, one need only look at Comcast, who was caught inspecting packets and secretly resetting clients’ BitTorrent connections to slow down the upstream traffic (and is currently appealing the resulting FCC fine).

So if Vudu hits big, we ain’t seen nothing yet - the potential success of the device portends quite the Net Neutrality showdown.