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Cable Companies: We're Afraid Netflix Will Demand Payment From ISPs

Dega704 (1454673) writes While the network neutrality debate has focused primarily on whether ISPs should be able to charge companies like Netflix for faster access to consumers, cable companies are now arguing that it's really Netflix who holds the market power to charge them. This argument popped up in comments submitted to the FCC by Time Warner Cable and industry groups that represent cable companies. (National Journal writer Brendan Sasso pointed this out.) The National Cable & Telecommunications Association (NCTA), which represents many companies including Comcast, Time Warner Cable, Cablevision, Cox, and Charter wrote to the FCC:

"Even if broadband providers had an incentive to degrade their customers' online experience in some circumstances, they have no practical ability to act on such an incentive. Today's Internet ecosystem is dominated by a number of "hyper-giants" with growing power over key aspects of the Internet experience—including Google in search, Netflix and Google (YouTube) in online video, Amazon and eBay in e-commerce, and Facebook in social media. If a broadband provider were to approach one of these hyper-giants and threaten to block or degrade access to its site if it refused to pay a significant fee, such a strategy almost certainly would be self-defeating, in light of the immediately hostile reaction of consumers to such conduct. Indeed, it is more likely that these large edge providers would seek to extract payment from ISPs for delivery of video over last-mile networks."
Related: an article at Gizmodo explains that it takes surprisingly little hardware to replicate (at least most of) Netflix's current online catalog in a local data center.

5 of 200 comments (clear)

  1. Re:What? by Travis+Mansbridge · · Score: 5, Insightful

    The Telecommunications association seems to have forgotten how telecommunication works.. not to mention the meaning of the word "indeed"

  2. Re:What? by alen · · Score: 5, Informative

    back in the 1990's ESPN extracted payment from every ISP for users to access the website

    this was before watch ESPN and needing a cable subscription. this was at the dawn of the internet for people to access a "free"website.

  3. Re:What? by ShaunC · · Score: 5, Interesting

    To some extent I'm sure it's still happening. As a Comcast subscriber I have access to an online streaming service called "WatchESPN" that lets me watch various ESPN channels on my computers or phones, as long as I'm on my Comcast internet connection. I don't use it, but I guarantee you that part of my monthly fee is paying for it, just like I don't watch any of the ESPN TV channels but I know a big chunk of my monthly cable TV fee goes straight to them. Of course ESPN also offers ESPN3.com which requires an additional monthly subscription on its own.

    There used to be a chart with a nice breakdown of how much the average cable subscriber's bill goes to each of the content providers. ESPN was by far the biggest chunk, Disney/ABC took a good portion, etc. I'd love to see a recent breakdown if anyone has one.

    --
    Thanks to the War on Drugs, it's easier to buy meth than it is to buy cold medicine!
  4. Re:not likely by Eristone · · Score: 5, Insightful

    I must be missing something - you are unable to provide the bandwidth you advertise to your end users and you are complaining that the companies they are requesting data from are at fault? This is the same as saying that the concert at the stadium is at fault for the traffic backups. Wouldn't the fault be more with the road providers? Especially when the concert people are saying "Hmm, we know this is possibly a problem - we can put a live hologram local to your people so they don't have to get on your roads" and instead of saying "yes", you say "no, it's all your fault we can't provide it". Your end-users are your customer - and should you start throttling because you're unwilling (or unable) to provide the bandwidth, they are well within their rights to nail you to the wall for failing to provide SLA data throughput if it is correctable by you.

  5. Re:Millionare panhandlers by tlambert · · Score: 5, Informative

    Reminds me of the stories of panhandlers begging at intersections
    who get picked up by their chauffeurs at the end of the day to go back
    to their mansions.

    You mean complete imaginary bullshit made up by and propagated by greedy
    sociopaths eager to rationalize their abandonment of their fellow man?

    Especially these:

    http://www.youtube.com/watch?v...
    http://www.youtube.com/watch?v...
    http://www.youtube.com/watch?v... ...and lest you think this is a U.S. only thing...

    http://www.youtube.com/watch?v...
    http://www.youtube.com/watch?v...
    http://www.youtube.com/watch?v...