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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

#61

Post by jamesaguilar »

k-mcgrady wrote: post #57
cmircea wrote: post #50

Earlier quoted context omitted.

Not when their competitors will do the same. Heck, what competitors? Many areas only have Comcast service!

>> "Many areas only have Comcast service!" Do a lot of people in the US only have access to one or two ISP's?? If so why? I'm in a not particularly urban part of Ireland and I can choose between at least 5 ISP's, decent speeds, and a good variety of prices.

There are normally only one or two low cost options. There are often some higher cost options. For example, in the Bay Area there is high speed microwave internet available, but it comes out to more like 150/mo.

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

#62

Post by balls187 »

jadeddrag wrote: post #54
aleem wrote: post #44

Earlier quoted context omitted.

That is not going to happen. The onus is not on the consumer, it's on the service provider. The service provider may transfer the costs onto the consumer but Comcast won't directly charge the consumers a premium. That would be a bad move and Comcast would lose out its customers to competitors.

Why not? Isn't this exactly how they sell premium channels, like HBO?

Not really the same.

HBO charges Comcast a flat rate to carry their content, because HBO has great content.

Comcast then bundles HBO in various packages designed to bring a profit, knowing that people just want HBO, and are willing to pay extra for a bundle in order to include it.

In this case, Netflix is paying Comcast for the rights to use their End of Mile network.

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

#64

Post by erichurkman »

aleem wrote: post #44
scelerat wrote: post #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 pro…

That is not going to happen. The onus is not on the consumer, it's on the service provider. The service provider may transfer the costs onto the consumer but Comcast won't directly charge the consumers a premium. That would be a bad move and Comcast would lose out its customers to competitors.

What competitors? In many areas, they are the only broadband provider. The next-closest providers are typically DSL.

Consumers are going to get screwed on the front & back end of this.

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

#65

Post by pcurve »

Given Netflix and Youtube account for rougly 50% of peak time traffic, I wonder if Google will also follow suit.

I'm all for net neutrality, but I think Netflix should've been paying some usage fee into a communal fund that is off-limit to ISPs, but can be used to improve broadband quality for everyone.

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

#66

Post by saryant »

bbosh wrote: post #34
scelerat wrote: post #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 pro…

> I don't see any other way around this. Vote with your feet.

So I should just disconnect myself from the internet?

Because it's either Comcast or a DSL provider that won't give me a straight answer as to whether or not they service my address. And this is in Boulder.

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

#67

Post by pasbesoin »

In addition to the absurd, outsized cost, I don't want to pay Comcast et al. -- directly or indirectly -- these extorted prices, because they turn around and spend from these enormous profit margins to further constrain and "prioritize" my use.

The only solution, is to cut off this excess profit that has become the lifeblood of this systematic abuse.

And where these oligopolies have essentially captured the market to the point of excluding any and all competition: End them, legally. Break them up. Specifically legalize and perhaps even foster municipal broadband.

There may be no ultimate, static solution. But there are definitely next steps, and they are overdue.

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

#68

Post by aleem »

RyanZAG wrote: 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…

The same thought came to my mind, a moat around Netflix's current business. However, I don't think that's quite how it will play out.

Comcast won't charge new streaming providers from the get go. That will stunt its own business opportunities. Instead it will prefer to let them grow to the point where they can claim network congestion issues. At that point it has a "justifiable claim" as well as more negotiating leverage.

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

#69

Post by balls187 »

k-mcgrady wrote: post #57
cmircea wrote: post #50

Earlier quoted context omitted.

Not when their competitors will do the same. Heck, what competitors? Many areas only have Comcast service!

>> "Many areas only have Comcast service!" Do a lot of people in the US only have access to one or two ISP's?? If so why? I'm in a not particularly urban part of Ireland and I can choose between at least 5 ISP's, decent speeds, and a good variety of prices.

Depends.

Many people in the US have quite a bit of choices: Cable, DSL, Cell+Internet, Wireless. Usually those that live in large urban areas. But the service and quality of these ISP's varies greatly, which Comcast--in my area, being top.

Those Americans that live in rural areas, may not even have access to high speed internet, or always on internet--see the Xbox 1 fiasco for more details.

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