The battle for TV, part two: paying for bandwidth
TweetFollow Us on Twitter

The battle for TV, part two: paying for bandwidth

Many folks think that Apple should and will buy Netflix. I personally doubt it, but I can see the advantages for both companies. Regardless, pricing for Netflix and similar services may see a price hike.

On Nov, 19, Comcast informed Level 3, an Internet backbone provider that handles streaming for Netflix, that, for the first time, it will demand a recurring fee from Level 3 to transmit Internet online movies and other content to Comcast's customers who request such content.

"By taking this action, Comcast is effectively putting up a toll booth at the borders of its broadband Internet access network, enabling it to unilaterally decide how much to charge for content which competes with its own cable TV and Xfinity delivered content," says "Fortune (). "This action by Comcast threatens the open Internet and is a clear abuse of the dominant control that Comcast exerts in broadband access markets as the nation's largest cable provider. This sets a scary precedent.  If Comcast can charge an extra fee to Level 3 for hosting Netflix content, it could (and probably will at some point) charge Google to stream YouTube movies or Apple to broadcast iTunes content.  Because Comcast owns the last mile, they hold the keys."

In its defense, Comcast says it had to do something because of all the bandwidth Netflix is hogging. "Level 3 has misportrayed the commercial negotiations between it and Comcast," Joe Waz, Comcast's senior vice president for external affairs, said in a statement. "This has nothing to do with Level 3's desire to distribute different types of network traffic. Comcast has long established and mutually acceptable commercial arrangements with Level 3's content delivery network competitors in delivering the same types of traffic to our customers."

Prior to the Netflix deal, Comcast and Level 3 had a typical industry peering arrangement, notes "CNET" (http://news.cnet.com/8301-1023_3-20024070-93.html). Level 3 is regularly carries traffic that originates and terminates on Comcast's broadband network. Under their previous arrangement, the companies essentially swapped traffic since both networks generated equal amounts of traffic.

However, with the Netflix deal, the balance of traffic between the two companies will shift dramatically, says "CNET." Netflix has been said to generate 17 percent of traffic on the Internet at peak times in the U.S. Comcast said in its statement that it expects to receive five times more traffic from Level 3 as part of this new arrangement.

Netflix's bandwith consumption is likely to increase still more. The company recently landed another major content deal with Disney and ABC. In exchange for a minimum 15-day delay between a first TV appearance and the online version, Netflix will get a deeper catalog that includes prior-season access to current shows like "Grey's Anatomy" and full seasons of past shows like "Lost" and "Scrubs." Disney's TV content is expanding, and ABC Family is reaching the Internet for the first time.

And companies like Netflix, Hulu and something-I-think-Apple-may-offer will only continue to grow as cable and satellite subscriptions decrease. It's a natural progression. With the exception of sports and local TV shows, you can get most of the same shows and movies you want from Internet TV for a fraction of the price of cable or satellite.

The long-term future of television viewing is the Internet. And that probably means higher pricing for Internet access. However, I'd pay more (at least some more) if I could drop cable TV entirely.

-- Dennis Sellers

 

Community Search:
MacTech Search:

Software Updates via MacUpdate

Latest Forum Discussions

See All

Combo Quest (Games)
Combo Quest 1.0 Device: iOS Universal Category: Games Price: $.99, Version: 1.0 (iTunes) Description: Combo Quest is an epic, time tap role-playing adventure. In this unique masterpiece, you are a knight on a heroic quest to retrieve... | Read more »
Hero Emblems (Games)
Hero Emblems 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: ** 25% OFF for a limited time to celebrate the release ** ** Note for iPhone 6 user: If it doesn't run fullscreen on your device... | Read more »
Puzzle Blitz (Games)
Puzzle Blitz 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Puzzle Blitz is a frantic puzzle solving race against the clock! Solve as many puzzles as you can, before time runs out! You have... | Read more »
Sky Patrol (Games)
Sky Patrol 1.0.1 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0.1 (iTunes) Description: 'Strategic Twist On The Classic Shooter Genre' - Indie Game Mag... | Read more »
The Princess Bride - The Official Game...
The Princess Bride - The Official Game 1.1 Device: iOS Universal Category: Games Price: $3.99, Version: 1.1 (iTunes) Description: An epic game based on the beloved classic movie? Inconceivable! Play the world of The Princess Bride... | Read more »
Frozen Synapse (Games)
Frozen Synapse 1.0 Device: iOS iPhone Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: Frozen Synapse is a multi-award-winning tactical game. (Full cross-play with desktop and tablet versions) 9/10 Edge 9/10 Eurogamer... | Read more »
Space Marshals (Games)
Space Marshals 1.0.1 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0.1 (iTunes) Description: ### IMPORTANT ### Please note that iPhone 4 is not supported. Space Marshals is a Sci-fi Wild West adventure taking place... | Read more »
Battle Slimes (Games)
Battle Slimes 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: BATTLE SLIMES is a fun local multiplayer game. Control speedy & bouncy slime blobs as you compete with friends and family.... | Read more »
Spectrum - 3D Avenue (Games)
Spectrum - 3D Avenue 1.0 Device: iOS Universal Category: Games Price: $2.99, Version: 1.0 (iTunes) Description: "Spectrum is a pretty cool take on twitchy/reaction-based gameplay with enough complexity and style to stand out from the... | Read more »
Drop Wizard (Games)
Drop Wizard 1.0 Device: iOS Universal Category: Games Price: $1.99, Version: 1.0 (iTunes) Description: Bring back the joy of arcade games! Drop Wizard is an action arcade game where you play as Teo, a wizard on a quest to save his... | Read more »

Price Scanner via MacPrices.net

14-inch M4 Pro/M4 Max MacBook Pros on sale th...
Don’t pay full price! Get a new 14″ MacBook Pro with an M4 Pro or M4 Max CPU for up to $320 off Apple’s MSRP this weekend at these retailers…they are the lowest prices available for these MacBook... Read more
Get a 15-inch M4 MacBook Air for $150 off App...
A couple of Apple retailers are offering $150 discounts on new 15″ M4 MacBook Airs this weekend. Prices at these retailers start at $1049: (1): Amazon has new 15″ M4 MacBook Airs on sale for $150 off... Read more
Unreal Mobile is offering a $100 discount on...
Unreal Mobile, an MVNO using AT&T and T-Mobile’s networks, is offering a $100 discount on any new iPhone with service. This includes new iPhone 16 models as well as iPhone 15, 13, and SE phones... Read more
16-inch M4 Pro MacBook Pros on sale for $250-...
Don’t pay full price! Amazon has 16-inch M4 Pro MacBook Pros (Silver or Black colors) on sale right now for up to $300 off Apple’s MSRP. Shipping is free. These are the lowest prices currently... Read more
Get a 14-inch M4 MacBook Pro for up to $240 o...
Amazon is offering a $150-$250 discount on Apple’s 14-inch M4 MacBook Pros right now. Shipping is free. Be sure to select Amazon as the seller, rather than a third-party seller: – 14″ M4 MacBook Pro... Read more
Clearance 14-inch M3 Pro MacBook Pros availab...
B&H Photo has clearance 14″ M3 Pro MacBook Pros (in Black or Silver) on sale for $500 off original MSRP, only $1499. B&H offers free 1-2 day delivery to most US addresses: – 14″ 11-Core M3... Read more
Sams Club is offering a $50 discount on Titan...
Sams Club has Titanium Apple Watch Series 10 models on sale for $50 off Apple’s MSRP. Sams Club Membership required. Note that sale prices are for online orders only, in-store prices may vary. Choose... Read more
Sunday Sale: Apple’s latest 13-inch M4 MacBoo...
Amazon has new 13″ M4 MacBook Airs on sale for $150 off MSRP right now, starting at $849. Sale prices apply to most colors and configurations. Be sure to select Amazon as the seller, rather than a... Read more
Apple’s M4 Mac minis on sale for record-low p...
B&H Photo has M4 and M4 Pro Mac minis in stock and on sale right now for up to $150 off Apple’s MSRP, each including free 1-2 day shipping to most US addresses. Prices start at only $469: – M4... Read more
Week’s Best Deals: 14-inch M4 MacBook Pros fo...
Don’t pay full price! These retailers are offering $200-$250 discounts on new 14-inch M4 MacBook Pros this week…they are the lowest sale prices available for new MacBook Pros: (1): Amazon is offering... Read more

Jobs Board

All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.