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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.
Net Neutrality isn't dead, its just not being reinforced by the FCC, the FTC now owns it.
FTC will have to handle bad throttling practices by mega corps of Comcast and ATT.
Comcast offers unlimited for 50 extra a month, so they can cover that loss in the NFL/ESPN sports ball licenses...
Binge netflix all you want. I'm too busy watching twitch.
If Comcast throttles YouTube, then Alphabet can propose launching in a critical (read: lucrative) Comcast market.
You mean like Google did to Microsoft Office with Google Docs? Years later, that's still costing MS big-time.. way more than they'll ever make from Bing. Didn't cost Google much, but it sure put MS on notice.
There's lots more where that came from.
We know how AT&T handles this sort of thing with TV networks.
Next week, you'll go to Netflix.com and they'll start showing modal popups saying AT&T has decided to deny access to Netflix in a few weeks, and to call AT&T and let them know how you feel.
Three weeks later, you'll go to Netflix.com and get a certificate error: bad CNAME. Users who are idiots enough to click through the errors will see a marketing-crafted propaganda video about how Netflix has chosen not to share their content anymore with AT&T subscribers, and to call Netflix and let them know how you feel.
Invariably, this will occur right when some major season finale is supposed to air.
The Internet should be a utility. It should just be metered and paid for by the consumers, who should be able to freely change their caps. Who cares how they use the bandwidth they pay for?
Everyone is worried that ISPs will start charging more money for faster content. So, Netflix should beat them to the punch. Netflix should create NIPP (Netflix ISP Partner Program), where partners pledge to not charge customers more money for decent bandwidth, and that they will not charge Netflix a premium transit fee to keep from slowing them down. ISPs that don't sign up for NIPP get videos to their IP space automatically downgraded to a lower quality. If it is impossible to get full resolution videos on Comcast, you can bet I'll be moving to AT&T Fiber, or Sonic, or somebody who is partnered with Netflix.
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