3 ms·
If enough Netflix customers live in Comcast-only areas, Netflix would have had little choice but to lean on Level 3 to capitulate. Even if the customers are wil
by karzeem 16y ago
If enough Netflix customers live in Comcast-only areas, Netflix would have had little choice but to lean on Level 3 to capitulate. Even if the customers are willing to switch ISPs just to get Netflix, they wouldn't have had the option. That translates to less money for Netflix, more pissed off customers for Comcast, and a true win for nobody. With Netflix and Level 3 falling on their swords, their customers at least come out ahead in the short term.
In the long term, it's obviously disastrous. At some point, companies will have to refuse en masse to pay the protection money. In the areas where it has a monopoly, Comcast could stomach losing Netflix, but not another 10 or 20 big sites on top of it. There are antitrust issues with collective refusal to pay, but there's got to be a way around that.
- bbatsell 16y agoIt seems to me that Netflix management is a little more forward-thinking than that. Hastings, et al. know that streaming is going to be their primary market and if they're having to pay off every possible intermediary in the future, their margins are going to disappear completely. While certainly not an ideal situation, I could easily see Netflix going after Comcast with highly-visible notices to their Comcast customers rather than pay them off and set a very, very bad precedent.