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Netflix Agrees to Pay Comcast to End Web Traffic Jam

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Re: Netflix Agrees to Pay Comcast to End Web Traffic Jam

#11

Hard to underestimate the ramifications of an agreement like this. Many would say this is the market acting in the way it should.

I'd say my internet provider is fucking me over in failing to provide me with reliable connectivity I'm paying for. But that's just me.

Re: Netflix Agrees to Pay Comcast to End Web Traffic Jam

#14

Hard to underestimate the ramifications of an agreement like this. Many would say this is the market acting in the way it should.

Local Cable companies are not a free competitive market; they are state-sanctioned local monopolies.

Re: Netflix Agrees to Pay Comcast to End Web Traffic Jam

#16
This is actually good for Netflix and terrible for any competition. While Netflix probably has to hand over a bit of money, they are in a much better position to do so than any of their competitors as they're the biggest. In effect this creates a massive entry barrier into the video streaming market. You will now likely need to set up a massive infrastructure and pay massive bribes to various internet providers to be able to compete. So this is probably a smart move by Netflix by creating entry barriers that they should be able to easily pass on to consumers if they can achieve market dominance.

Re: Netflix Agrees to Pay Comcast to End Web Traffic Jam

#19

Wow, Netflix has decided to negotiate with the terrorists? I'm pretty disappointed. Edit: Having read more of the non-paywalled version, I have to say I think they're shooting themselves in the foot, even if Comcast was offering a better price than Cogent. It sets a terrible precedent, and gives Comcast the leverage to bump the price extortionately at the end of the deal.

As much as I hate the ISPs, calling them terrorists is a bit too much.

Re: Netflix Agrees to Pay Comcast to End Web Traffic Jam

#20
And so the precedent is set. This is the direction I see things going:

For $70 a month from Comcast you can get Amazon, Google, and Facebook. For only $10 more a month you can add Netflix and Spotify. Want Pandora? Sorry, you'll have to switch to AT&T for that.

The broadband providers are used to this type of packaged service given their history as cable television providers. It's how they make their money beyond providing simple connectivity. Their future expansion and profits are linked to their ability to create exclusivity and extract revenue based on targeted demand.

I don't see any other way around this. Absent regulations prohibiting packet discrimination, I'm not sure I would do any different if I were in Comcast's shoes.

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