6 ms·

> To play devil's advocate, what it means is that Comcast has the better business model. After all, that's why Apple and Samsung dominate the cellular industry.

> To play devil's advocate, what it means is that Comcast has the better business model. After all, that's why Apple and Samsung dominate the cellular industry. That is devil's idiot. I can choose between 4 different cell carriers and dozens of smartphone makers. Many people only have one option if they want >10Mbps internet. Fortunately I get to choose between Optimum and FiOS. Optimum gives me 60/25 for the basic rate to keep me from switching to FiOS.

rayiner 13y ago
I was addressing chimeracoder's point about vertical integration. There might be tons of Android manufactures peddling phones, but Apple and Samsung are eating up all the profits because they are verticicaly integrated. That's the major play Comcast is making. I wouldn't be surprised to see this coming soon to wireless. Imagine movie caching servers integrated into the backhaul network instead of going over the public internet. The improvement in QoS would make being a Netflix type entity untenable.
- jcampbell1 13y ago
  He wasn't making a point about vertical integration, but rather about monopoly power. Perdue and Tyson are vertically integrated. They own feed mills, hatcheries, grow farms, packing plants, and distribution. No one cares because you can always just pick the package of chicken that costs $3.29 instead of $3.59. I also don't see how Samsung is vertically integrated. They don't make the OS, the App store, or have content/DRM. They have in-house manufacturing, but Apple doesn't. The two companies are vertically integrated in totally different ways, thus vertical integration is a weak argument for their success.
  - rayiner 13y ago
    See his second paragraph about owning NBC.
    - jcampbell1 13y ago
      That was also about monopoly power. If NBC were an independent entity, they would license their back catalogue to the highest bidder. Given that NBC is owned by a cable company, the strategy changes. The current dynamic for NBC is, if we license to Netflix, then some people will cut the cord, lowering Comcast/TWC cable revenue. The bigger Comcast is, the less likely NBC is willing to license content to Netflix. If NBC were independent, they would maximize their own revenue, but because they are owned by Comcast, NBC's decisions are to optimize profits for the combined company which is likely not in the interest of consumers.
      - joelhaus 13y ago
        This is the case regulators should make for putting conditions on the merger. Comcast should be forced to divest from NBC/Universal and agree not to acquire additional content. That would create a significant benefit for consumers.
      - rayiner 13y ago
        That describes a vertical monopoly, which is not prohibited. If Apple hadn't acquired PA Semi, they would be selling their products on the open market to the highest bidder, etc. Same situation.
- justincormack 13y ago
  Netflix already serve their content from servers colo'd at ISPs. Big FreeBSD boxes.
  - altcognito 13y ago
    http://www.networkworld.com/community/blog/netflix-goes-edge-internet http://www.networkworld.com/community/blog/netflix-goes-edge...

rayiner 13y ago

I was addressing chimeracoder's point about vertical integration. There might be tons of Android manufactures peddling phones, but Apple and Samsung are eating up all the profits because they are verticicaly integrated. That's the major play Comcast is making. I wouldn't be surprised to see this coming soon to wireless. Imagine movie caching servers integrated into the backhaul network instead of going over the public internet. The improvement in QoS would make being a Netflix type entity untenable.

jcampbell1 13y ago
He wasn't making a point about vertical integration, but rather about monopoly power. Perdue and Tyson are vertically integrated. They own feed mills, hatcheries, grow farms, packing plants, and distribution. No one cares because you can always just pick the package of chicken that costs $3.29 instead of $3.59. I also don't see how Samsung is vertically integrated. They don't make the OS, the App store, or have content/DRM. They have in-house manufacturing, but Apple doesn't. The two companies are vertically integrated in totally different ways, thus vertical integration is a weak argument for their success.
- rayiner 13y ago
  See his second paragraph about owning NBC.
  - jcampbell1 13y ago
    That was also about monopoly power. If NBC were an independent entity, they would license their back catalogue to the highest bidder. Given that NBC is owned by a cable company, the strategy changes. The current dynamic for NBC is, if we license to Netflix, then some people will cut the cord, lowering Comcast/TWC cable revenue. The bigger Comcast is, the less likely NBC is willing to license content to Netflix. If NBC were independent, they would maximize their own revenue, but because they are owned by Comcast, NBC's decisions are to optimize profits for the combined company which is likely not in the interest of consumers.
    - joelhaus 13y ago
      This is the case regulators should make for putting conditions on the merger. Comcast should be forced to divest from NBC/Universal and agree not to acquire additional content. That would create a significant benefit for consumers.
    - rayiner 13y ago
      That describes a vertical monopoly, which is not prohibited. If Apple hadn't acquired PA Semi, they would be selling their products on the open market to the highest bidder, etc. Same situation.
justincormack 13y ago
Netflix already serve their content from servers colo'd at ISPs. Big FreeBSD boxes.
- altcognito 13y ago
  http://www.networkworld.com/community/blog/netflix-goes-edge-internet http://www.networkworld.com/community/blog/netflix-goes-edge...