Netflix makes deal with Comcast

I bet this deal "establishing a more direct connection to provide a better service to customers" is directly related to the court case that recently struck down FCC internet net neutrality: http://www.boston.com/business/tech...-neutrality/9sRnjLPfiXYTST1siI0iIL/story.html

I hope they get this sorted quickly, particularly as self-distribution online is JUST coming to fruition for small and medium producers who cannot possibly afford to compete with whatever kind of deal Comcast can strike with Netflix.
 
So, Netflix knows that with net neutrality gone, the wild west begins. The bad part, is that now Comcast - or whoever - will be able to charge any prices they want. The good part is that now Comcast - or whoever - will be able to charge any prices they want.

Here's how. Comcast: "pay us mucho $, or watch your traffic slow and die". Netflix: "fantastic - here's the money; if you ever need any more, just ask!"

Why? Because they're the big 800lb gorilla - there are only a few (Amazon etc.). They can afford to pay more. But a smaller, or new just getting established competitor cannot afford the high rates. So Netflix kills competition. Once there is no competition, they might pass the higher cost onto the customers, since where is the customer going to go, when there are no competitors?

Before: Netflix has to compete with everyone on the same terms, always nervous that some new kid on the block is going to outflank them.

Now: Netflix has killed the competition who can't afford the higher prices, and then in that environment they can raise prices - so they lost nothing, except have been made safer from competition.

Loser: the consumer, who now will pay higher prices for a worse selection and less competition.

Same as it ever has been in the online business: for some countries (won't mention which), the consumer pays a ton more $ for lower speed.

You're welcome.

Meanwhile, there will be a lot of people happy with this, because, yay, Netflix is now faster as it is no longer choked by Comcast - yippy!
 
As part of the deal to get approval from the Feds to takeover NBC a few years ago Comcast agreed to abide by the Net Neutrality regulations until 2018. That agreement still stands even though Verizon won the Net Neutrality case against the FCC. To point, this deal between Netflix and Comcast has to fit within the confines Net Neutrality.
 
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