Netflix Caves to Comcast's Demands

[Fearless]

After its popular streaming video service endured months of declining performance on home internet connections provided by Comcast — the country’s largest cable TV and broadband internet provider — Netflix has agreed to pay a fee for more direct access to the Comcast network.

In the complex and politically charged world of high-speed internet access, this is a landmark agreement. Traditionally, content providers like Netflix — which streams TV shows and movies over the net — have not paid for direct access to consumers who use home internet connections from ISPs like Comcast, and the move has sparked countless questions about what the arrangement means for the future of the internet, with many asking whether Comcast and other big internet providers will have too much control over what travels across the networks.

The wildcard here is that Comcast isn’t just a company that ultimately delivers services like Netflix. As the owner of TV and movie giant NBCUniversal, it also competes with services like Netflix. The concern is that Comcast has the power to quickly deliver its own content over its own network, while charging extra for others to use the network — a situation that could prevent smaller and newer outfits from competing.

Because Comcast and Netflix have released few details about their agreement, it’s hard to predict the ramifications. “The question is whether Comcast is using its peering agreements anti-competitively or not,” says John Bergmayer of Public Knowledge, a public advocate that backs net neutrality, the notion that certain types of internet shouldn’t be prioritized over others. “I just don’t think we have enough information.”

http://www.wired.com/wiredenterprise/2014/02/comcast-netflix/

-----------------------------------------

Comcast cable is in direct competition with Netflix streaming movies. Comcast is one of the largest internet and cable companies in the US. In many areas they don't have direct competition... except for services like Netflix and Hulu. So they forcibly lower the quality of these services to make theirs look more profitable. There is literally no other option for internet/cable in many areas. So, Netflix/Hulu will have to pay to survive.

Net neutrality anyone?

[dilby]

1. Smoke and mirrors.

You watch in a year Netflix will be a paid for cable service on Comcast similar to HBO. This type of negotiation takes at a minimum 6 months so Netflix was talking with Comcast way before Net Neutrality died.

[Fearless]

2. This has nothing to do with being included in cable packages

It is a fee being paid by Netflix to Comcast so that Comcast won't throttle their bandwidth. Cut and dry.

[dilby]

4. Netflix is working with Comcast.

They are going to want to launch a paid cable service so they are not going to bite the hand that will eventually feed them.

[Fearless]

5. Comcast is already biting that hand

That's what the fee is. It's monopolistic, plain and simple. They see Netflix as a threat and must find a way to subjugate them.

[dilby]

6. Netflix could have worked a deal with another Cable Provider.

Making that cable provider more attractive than Comcast but they did not. It's a two way street, Comcast is going to win business from Netflix subscribers who want the faster service and Netflix is going to get business from Comcast subscribers because it will be faster than Hulu or Amazon Prime. I am willing to bet Netflix is not going to sign a deal like this with any other service provider and Comcast is going to give Netflix preferential treatment. Notice there is no talks of how much Netflix is paying for this sweetheart deal.

Netflix is in bed with Comcast, this is just like big oil and the auto industry.

[Fearless]

10. They shouldn't have to. That's the WHOLE POINT.

Comcast is in the middle of a GIANT conflict of interest. It used to be called a monopoly. Now it's business as usual.

[dilby]

13. My point is Netflix loves this.

Netflix was working with Comcast before Net Nuetrality died, they will pass the cost off to their users so it costs Netflix nothing and protects them because it will prevent startup competitors due to the cost factors. The only competitors that Netflix will ever have will be Amazon Prime and maybe Hulu since those are the only two who will have the capital to pay the cable providers fees. Netflix never wanted net neutrality they saw the writing on the wall and they saw money.

[Fearless]

14. Bull

They are being extorted by Comcast.

[dilby]

15. Nope not extorted protected.

Netflix gains more out of this deal than Comcast. Comcast makes more money but Netflix has eliminated the chance of future competition. Netflix picked the side of anti net neutrality when they began working with Comcast before the ruling ever took place.

[Fearless]

16. Netflix gains NOTHING!

Comcast moved the goal posts and made Netflix pay to get back to center. That's utterly ridiculous!

[democratisphere]

3. The consumer viewer will ultimately be the one to pay MORE!

Soon it will not be a matter of eating dinner in front of the TV; rather, will I eat dinner OR watch TV.

[gopiscrap]

7. I can't stand Comcast

[PowerToThePeople]

8. So long open Internet, it has been a great run. eom.

[kenny blankenship]

9. There will be people along shortly to assure you that might makes right

of course, I am using the term "people" very loosely.

[jsr]

12. The Supremes said they're people

[Javaman]

11. I had time warner, they were just taken over by comcast.

when google comes to my town this year (Austin), I'm dumping comcast.