Netflix Blinks, Will Pay Comcast For Network Access

We've mentioned several times the tension between giant streaming sources (especially Netflix), and ISPs (especially Comcast, especially given that it may merge with Time-Warner). Now, Marketwatch reports that Netflix has agreed to pay Comcast (amount undisclosed) for continued smooth access to Comcast's network customers, "a landmark agreement that could set a precedent for Netflix's dealings with other broadband providers, people familiar with the situation said." From the article: "In exchange for payment, Netflix will get direct access to Comcast's broadband network, the people said. The multiyear deal comes just 10 days after Comcast agreed to buy Time Warner Cable TWC -0.79% Inc., which if approved would establish Comcast as by far the dominant provider of broadband in the U.S., serving 30 million households" I wonder how soon until ISPs' tiered pricing packages will become indistinguishable from those for cable TV, with grouped together services that vary not just in throughput or quality guarantees, but in what sites you can reach at each service level, or which sports teams are subject to a local blackout order.

Comments

Not long

[mbone]

I wonder how soon until ISP's tiered pricing packages will become indistinguishable from those for cable TV, with grouped together services that vary not just in throughput or quality guarantees, but in what sites you can reach at each service level, or which sports teams are subject to a local blackout order.

Not long. The cable guys are, in this way, just like the Bellheads. They see their real moneymaker as these blasted tiered services (never mind their historical roots in equipment limitations). Soon you will probably have to buy the Disney package to be able to get the Google package to be able to get slashdot.

What I think of the judges that thought this was a good idea is not fit for slashdot, much less polite company.

Does this work two ways?

[Anonymous Coward]

Maybe it is time for Google, Facebook, etc.. start charging Comcast for access to their networks?

What a shame Netflix took a step back on this and what a shame Netflix didn't get any support by the giants of the internet.

Re:If Comcast were Exxon

[Attila Dimedici]

That is not true. There have been several implementations of communism. They have all been relatively small scale. As far as I am aware, the only ones which were at all successful were religious communities (See Hutterites). The thing to notice about all of the implementations of communism is that they were purely voluntary (that is, those who did not wish to take part in communism were free to leave the group).