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'Netflix and Alphabet Will Need To Become ISPs, Fast' (techcrunch.com)
Following the recent official repeal of net neutrality and approval of AT&T's acquisition of Time Warner, an anonymous reader shares an excerpt from a report via TechCrunch, written by Danny Crichton. Crichton discusses the options Alphabet, Netflix and other video streaming services have on how to respond: For Alphabet, that will likely mean a redoubling of its commitment to Google Fiber. That service has been trumpeted since its debut, but has faced cutbacks in recent years in order to scale back its original ambitions. That has meant that cities like Atlanta, which have held out for the promise of cheap and reliable gigabit bandwidth, have been left in something of a lurch. Ultimately, Alphabet's strategic advantage against Comcast, AT&T and other massive ISPs is going to rest on a sort of mutually assured destruction. If Comcast throttles YouTube, then Alphabet can propose launching in a critical (read: lucrative) Comcast market. Further investment in Fiber, Project Fi or perhaps a 5G-centered wireless strategy will be required to give it to the leverage to bring those negotiations to a better outcome.
For Netflix, it is going to have to get into the connectivity game one way or the other. Contracts with carriers like Comcast and AT&T are going to be more challenging to negotiate in light of today's ruling and the additional power they have over throttling. Netflix does have some must-see shows, which gives it a bit of leverage, but so do the ISPs. They are going to have to do an end-run around the distributors to give them similar leverage to what Alphabet has up its sleeve. One interesting dynamic I could see forthcoming would be Alphabet creating strategic partnerships with companies like Netflix, Twitch and others to negotiate as a collective against ISPs. While all these services are at some level competitors, they also face an existential threat from these new, vertically merged ISPs. That might be the best of all worlds given the shit sandwich we have all been handed this week.
For Netflix, it is going to have to get into the connectivity game one way or the other. Contracts with carriers like Comcast and AT&T are going to be more challenging to negotiate in light of today's ruling and the additional power they have over throttling. Netflix does have some must-see shows, which gives it a bit of leverage, but so do the ISPs. They are going to have to do an end-run around the distributors to give them similar leverage to what Alphabet has up its sleeve. One interesting dynamic I could see forthcoming would be Alphabet creating strategic partnerships with companies like Netflix, Twitch and others to negotiate as a collective against ISPs. While all these services are at some level competitors, they also face an existential threat from these new, vertically merged ISPs. That might be the best of all worlds given the shit sandwich we have all been handed this week.
Comcast was throttling BitTorrent and lying about it to its customers before the FCC regulations. Comcast also intentionally let their interconnections get saturated to slow down Netflix to get more money. Weâ(TM)ve seen it happen before, it will happen again.
The FTC will only be able to enforce deceptive practices. If Comcast buries in their TOS that they can slow down connections as they please, it wonâ(TM)t be a violation.
One minor correct, AT&T is not buying Time Warner the cable company. That already got bought by Charter and combined to form Spectrum. AT&T is buying Time Warner the content company (CNN, HBO, Warner Bros, etc.)
Strange that you have no cpmpetition in the US and here I amn living in the communist country (accoding to stuped Mericans) of Europe and have the option of several companies with several offers at several speeds.
I have real unlimeted and pay 40 EUR or so for 100M down and 30M up. There are cheaper and faster ones, but they will not be as unlimited.
And I live in one of the more expensive ones with not that many competition as others.
Stuped communists who do things for the people by the people.
Don't fight for your country, if your country does not fight for you.