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AVonGauss
Premium
join:2007-11-01
Boynton Beach, FL

1 recommendation

reply to train_wreck

Re: [Business] Looks like Netflix is paying up to improve signals Source WSJ.

said by train_wreck:

yeah, this'll probably open the floodgates for incumbent ISPs to start charging all sorts of other companies for "premium" access to its customers (and by "premium", i might mean "usable"), particularly if those companies have competing interests with the ISP conglomerates.

oh, and i wouldn't be surprised to see netflix subscriber rates get hiked as an unfortunate "side-effect" of this.

The amount of money NetFlix pays anyone for transit is insignificant when compared to content I would imagine.

What this really means, in the long term, is rather than paying a third party (i.e. L3, Cogent) fees for transit, they will be paying the ISP directly. Depending on NetFlix's network and negotiation skills, it could in the long term save NetFlix quite a bit of cash.

This isn't exactly a new or unique situation, any Internet content provider once reaching a certain size has to make the transition.


jlivingood
Premium,VIP
join:2007-10-28
Philadelphia, PA
kudos:2
said by AVonGauss:

This isn't exactly a new or unique situation, any Internet content provider once reaching a certain size has to make the transition.

+1
--
JL
Comcast


connections

@pppoe.ca
reply to AVonGauss
said by AVonGauss:

This isn't exactly a new or unique situation, any Internet content provider once reaching a certain size has to make the transition.

Extortion is extortion no matter what the size of the company involved. Just because its already happened doesn't make it right.