Netflix and Comcast recently agreed upon a direct access deal that gives a better Netflix streaming experience to Comcast subscribers. Netflix is paying Comcast for this access, but that doesn’t mean it necessarily should be doing so, according to CFO David Wells.
Speaking at the at the Morgan Stanley Technology, Media & Telecom confab in San Francisco, Wells seemed to be sending a warning shot to other internet service providers (ISPs) who might be thinking of pushing Netflix for a similar deal. Said Wells:
“We still believe philosophically that the consumer is still best served in an environment where a content provider like [Netflix] doesn’t pay an ISP. That consumer pays for broadband and they should be able to use that broadband . . . But [the Comcast deal] was an opportunity to ensure better service long term for our subscribers.”
Interesting. Do you think Netflix will be able to hold the line here and not pay other ISPs direct access fees? If not, how many service providers would it be able to pay without being forced to pass some of the costs along to subscribers?
[via Home Media Magazine]
Comcast has become powerful enough to over turn the ‘net neutrality’ provision.
The ACLU has a petition for signing to restore same:
https://www.aclu.org/secure/stand-aclu-and-demand-preservation-net-neutrality?s_src=UNW140001SEM&ms=gad_SEM_Google_Search-NetNeutrality_Net%20Neutrality_net%20neutrality_p_37839962422
Also, ISPs should NOT be in the content business either. Remember ISPs are public utilities!
On the other hand, Netflix accounts for 60% of net traffic in prime time. They can’t just throw up their hands and pretend like bandwidth issues have nothing to do with them.
True. Right or wrong, agree or disagree, *somebody* is going to pay for Netflix using so much bandwidth.
The way I look at it, I pay my ISP for internet access, they promise to provide it at a certain speed, end of story. I think it’s wrong to charge the provider of a streaming service a fee for providing a service which they are contractually obligated to provide for anyway.The ISP is supposed to provide the service, weather I stream Vevo music videos or Netflix movies is NONE OF THEIR BUSINESS! Provide the service at the speed you promised!
Very well stated! I couldn’t agree more! They need to get this through their thick heads!