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

Six fantastic ways to spend National Vid...
As if anyone needed an excuse to play games today, I am about to give you one: it is National Video Games Day. A day for us to play games, like we no doubt do every day. Let’s not look a gift horse in the mouth. Instead, feast your eyes on this... | Read more »
Old School RuneScape players turn out in...
The sheer leap in technological advancements in our lifetime has been mind-blowing. We went from Commodore 64s to VR glasses in what feels like a heartbeat, but more importantly, the internet. It can be a dark mess, but it also brought hundreds of... | Read more »
Today's Best Mobile Game Discounts...
Every day, we pick out a curated list of the best mobile discounts on the App Store and post them here. This list won't be comprehensive, but it every game on it is recommended. Feel free to check out the coverage we did on them in the links below... | Read more »
Nintendo and The Pokémon Company's...
Unless you have been living under a rock, you know that Nintendo has been locked in an epic battle with Pocketpair, creator of the obvious Pokémon rip-off Palworld. Nintendo often resorts to legal retaliation at the drop of a hat, but it seems this... | Read more »
Apple exclusive mobile games don’t make...
If you are a gamer on phones, no doubt you have been as distressed as I am on one huge sticking point: exclusivity. For years, Xbox and PlayStation have done battle, and before this was the Sega Genesis and the Nintendo NES. On console, it makes... | Read more »
Regionally exclusive events make no sens...
Last week, over on our sister site AppSpy, I babbled excitedly about the Pokémon GO Safari Days event. You can get nine Eevees with an explorer hat per day. Or, can you? Specifically, you, reader. Do you have the time or funds to possibly fly for... | Read more »
As Jon Bellamy defends his choice to can...
Back in March, Jagex announced the appointment of a new CEO, Jon Bellamy. Mr Bellamy then decided to almost immediately paint a huge target on his back by cancelling the Runescapes Pride event. This led to widespread condemnation about his perceived... | Read more »
Marvel Contest of Champions adds two mor...
When I saw the latest two Marvel Contest of Champions characters, I scoffed. Mr Knight and Silver Samurai, thought I, they are running out of good choices. Then I realised no, I was being far too cynical. This is one of the things that games do best... | Read more »
Grass is green, and water is wet: Pokémo...
It must be a day that ends in Y, because Pokémon Trading Card Game Pocket has kicked off its Zoroark Drop Event. Here you can get a promo version of another card, and look forward to the next Wonder Pick Event and the next Mass Outbreak that will be... | Read more »
Enter the Gungeon review
It took me a minute to get around to reviewing this game for a couple of very good reasons. The first is that Enter the Gungeon's style of roguelike bullet-hell action is teetering on the edge of being straight-up malicious, which made getting... | Read more »

Price Scanner via MacPrices.net

Take $150 off every Apple 11-inch M3 iPad Air
Amazon is offering a $150 discount on 11-inch M3 WiFi iPad Airs right now. Shipping is free: – 11″ 128GB M3 WiFi iPad Air: $449, $150 off – 11″ 256GB M3 WiFi iPad Air: $549, $150 off – 11″ 512GB M3... Read more
Apple iPad minis back on sale for $100 off MS...
Amazon is offering $100 discounts (up to 20% off) on Apple’s newest 2024 WiFi iPad minis, each with free shipping. These are the lowest prices available for new minis among the Apple retailers we... Read more
Apple’s 16-inch M4 Max MacBook Pros are on sa...
Amazon has 16-inch M4 Max MacBook Pros (Silver and Black colors) on sale for up to $410 off Apple’s MSRP right now. Shipping is free. Be sure to select Amazon as the seller, rather than a third-party... Read more
Red Pocket Mobile is offering a $150 rebate o...
Red Pocket Mobile has new Apple iPhone 17’s on sale for $150 off MSRP when you switch and open up a new line of service. Red Pocket Mobile is a nationwide MVNO using all the major wireless carrier... Read more
Switch to Verizon, and get any iPhone 16 for...
With yesterday’s introduction of the new iPhone 17 models, Verizon responded by running “on us” promos across much of the iPhone 16 lineup: iPhone 16 and 16 Plus show as $0/mo for 36 months with bill... Read more
Here is a summary of the new features in Appl...
Apple’s September 2025 event introduced major updates across its most popular product lines, focusing on health, performance, and design breakthroughs. The AirPods Pro 3 now feature best-in-class... Read more
Apple’s Smartphone Lineup Could Use A Touch o...
COMMENTARY – Whatever happened to the old adage, “less is more”? Apple’s smartphone lineup. — which is due for its annual refresh either this month or next (possibly at an Apple Event on September 9... Read more
Take $50 off every 11th-generation A16 WiFi i...
Amazon has Apple’s 11th-generation A16 WiFi iPads in stock on sale for $50 off MSRP right now. Shipping is free: – 11″ 11th-generation 128GB WiFi iPads: $299 $50 off MSRP – 11″ 11th-generation 256GB... Read more
Sunday Sale: 14-inch M4 MacBook Pros for up t...
Don’t pay full price! Amazon has Apple’s 14-inch M4 MacBook Pros (Silver and Black colors) on sale for up to $220 off MSRP right now. Shipping is free. Be sure to select Amazon as the seller, rather... Read more
Mac mini with M4 Pro CPU back on sale for $12...
B&H Photo has Apple’s Mac mini with the M4 Pro CPU back on sale for $1259, $140 off MSRP. B&H offers free 1-2 day shipping to most US addresses: – Mac mini M4 Pro CPU (24GB/512GB): $1259, $... Read more

Jobs Board

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