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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

#23

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.

Yeah, that sounds like the market I'm familiar with.

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

#24

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.

Actually they are natural monopolies.

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

#25
post #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…

Or you could just use an existing CDN that's already paying the bribes.

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

#26

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.

I'm just using a metaphor. It's all business, but the game theory version is that by even engaging with them here, you legitimize the tactics and have to continue to pay up every time anyone comes calling.

Kipling has a cogent explanation of it in poetry form:

http://www.poetryloverspage.com/poets/kipling/dane_geld.html

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

#28
post #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…

Not so much established and highly capitalized competition (like Amazon), but disastrous for startups and new entrants. It adds a major barrier to entry in the form of a b2b paywall before you can reach consumers.

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

#29

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.

Actually, the way I see it, further inflation in the word 'terrorist' can only be good.

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

#30
While many make reference to the mythical creature Net Neutrality, I think at best this will be mostly a way for Comcast to enjoy some time for extra revenue and perhaps a chance to develop a closer partnership with a company like Netflix. They could use the extra revenue to improve their network and the relationship to give them a fighting chance when local access monopolies are broken through new access options.
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