With the signing of an interconnection agreement with Time Warner Cable, Netflix now has such deals in place with all four major domestic cable subscribers. But that doesn’t mean it’s happy about the situation.
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By making such deals, Netflix agrees to pay the ISPs an undisclosed sum in exchange for smoother streaming for Netflix customers. The company’s outspoken CEO, Reed Hastings, has opined that such deals will “destroy the internet.
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Hastings also disagrees with the way the FCC is currently handing the net neutrality crisis. Said Hastings:
“It would be better to have no rules than the ones being proposed by the FCC, which simply legalize discrimination on the Internet . . . We’ll never realize broadband’s potential if large ISPs erect a pay-to-play system that charges both the sender and receiver for the same content. Those practices would stunt innovation and competition and hold back the broader development of the Internet and the economic benefits it brings.”
Do you think Hastings is being a bit on the dramatic side here, or will consumers soon start to feel the consequences of these deals?
[via Home Media Magazine]
When the gov’t is involved everyone get screwed.
I’ll second that motion!
Ha! The FCC is a total joke. And part of the Government…
You can count on getting screwed..
I’ll second that motion!
will it Destroy the internet? The answer is yes it will.
One word….”yep”.
It’s already having undesirable effects. After years of downward pressure on the price of connecting to the internet, costs have gone up, even though the technology is less expensive. The anti-competitive nature of the interconnect fees as well as the ruling in the Aereo case, insulates the ISPs/Cable companies from market competition. Netflix may grumble about paying the fees, but are secretly glad as those fees will hinder smaller streaming services from effectively competing with Netflix. The entrenched companies get a break from competition.
Face it…………
The FCC will Ok the Comcast/Time Warner deal.
(( NO WAY SHOULD THAT EVER HAPPEN)). But it will.
As The Joke FCC has been payed off to let it happen..
And the Idiots on the hill in DC have there pay off’s also.
The net will go to hell. The streaming services will take a big hit.
As the caps on your net use start to take hold.
The B.S. Fast Lann bit will kick in. Your net bill will go up a good 30%.
it’s all Government B.S. To screw the working stiff and everyone they can..
In about 5-7 years there will be the Big three. Comcast. AT&T And Ver.
I’m not anti-government, but the FCC is a weak link. There are too many mergers, which means less choice and higher rates. It actually has been ongoing for awhile because many cities have contracts with one provider.
I totally agree with him. What we need is Google fiber in every city to give the ISP’s some competition.
I agree with you 100%… But it will never happen. When Comcast get’s Time Warner. They will start a new push. To block anyone coming into there area. And if you do come into it. You will need to pay up the kisser to do so..
Comcast has so much money to burn. They don’t care. They can hold things up in court for years on end..
They will buy the competition out. Are hold them up in court until they go under.
It will be one big Monopoly. It’s starting….
And you can for get the joke FCC.