Apparently Netflix decided to pay Comcast’s protection. Comcast must have made an offer they Netflix couldn’t refuse. This does not bode well for innovation in the future. I’m sure the other ISPs will also ask for their pound of flesh as well and they well again start coming for other making moves in this space. I’m looking at you Amazon.
This is why REAL Net Neutrality legislation is absolutely necessary. Scroll down to the link to see the best definition for what Net Neutrality is.
Netflix Agrees to Pay Comcast to End Traffic Jam
Deal Ends Standoff Over Streaming, Would Give Netflix Direct Access to Comcast Systems
By SHALINI RAMACHANDRAN
Netflix Inc. has agreed to pay Comcast Corp. to ensure Netflix movies and television shows stream smoothly to Comcast customers, a landmark agreement that could set a precedent for Netflix’s dealings with other broadband providers, people familiar with the situation said.
Comcast will retain NBC’s stake in Hulu, but is stripped of control
January 18, 2011 | 1:49 pm
Call it the Hulu Handcuff.
The federal government is making sure that Comcast Corp. won’t be able to use its newfound clout when it takes control of NBC Universal to sabotage the online video website Hulu.
via Comcast will retain NBC’s stake in Hulu, but is stripped of control | Company Town | Los Angeles Times.
Yes, but what provisions are in place to keep Comcast, one of the largest ISPs, from favoring Hulu over its competitors, like Netflix, being now that it has a 30% stake in Hulu?
If anyone is at all wondering why Net Neutrality is essential to a free and open Internet I give you exhibit A
Level 3, who recently signed a deal to become the primary provider for streaming Netflix content, was pressured by Comcast to pay a “recurring fee” “to transmit Internet online movies and other content to Comcast’s customers who request such content.” After a few days of negotiating, Level 3 paid the fee, ensuring uninterrupted service for Netflix subscribers.
via Comcast Is Bullying Netflix Partners Into Paying a Toll to Deliver Streaming Video.