The Actually Foreign Comcast-Netflix Deal
Advanced warning: the outset comment hither linked to an article which clearly understood this improve than me. I am notwithstanding perplexed - but this post service should survive taken amongst a grain of salt.
John
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Verizon took the FCC to courtroom on meshing neutrality together with won.
The big potential loser was Netflix. Under the former rules [the ones that the courtroom overruled] tier i meshing providers similar Comcast or Verizon had to deliver Netflix packets the same trend every bit they delivered whatever other packets (on landlines anyway) - together with that meant that they could non selectively deadening Netflix packets. If they were non allowed to selectively deadening Netflix packets together with then they couldn't accuse Netflix for the privilege of having their information delivered.
The declaration for slowing them is that Netflix uses thus much - together with - thus grade Verizon together with others - they should "pay their share". [Of course of report the counter declaration is that when I purchase my capacity I am paying for information to survive delivered to me - together with I demand maintain paid for all data, non all information except Netflix...]
Winning the courtroom example had to survive a positive for Verizon (that is why they took it to court). And it had to survive a negative for Netflix (the close probable political party to survive charged). You wouldn't disclose that inwards the stocks though - Netflix is upwards hard, Verizon non thus much.
Comcast had to a greater extent than argue to dislike Netflix than Verizon though. After all Netflix competes amongst Comcast's gist service (video delivery) and Netflix has but given Comcast a few 1000000 dollars - together with seemingly for no reason.
Now Reed Hastings is a clever human being - together with he is non inwards the trouble concern of giving away millions of dollars.
So I presume he did it for a reason.
And I remember it is this. The argue is to ready a price. Influenza A virus subtype H5N1 depression price. The lower the improve - because afterwards this they demand maintain the serious negotiation amongst Verizon. [And Verizon took the regime to courtroom together with won - which leads yous to remember that Verizon is probable to survive aggressive.]
Comcast knew they were non entitled to a brass razoo - together with Netflix was giving them a few 1000000 dollars. From Comcast's perspective that was piece of cake [take the gift]. The amount looks low. Comcast manages to await reasonable (and I don't unremarkably lay the words reasonable together with Comcast inwards the same sentence).
And Netflix sets a depression price.
It's a negotiating ploy.
But I don't believe it volition work.
Lowell McAdam is unlikely to autumn for it. He is non going to settle for single-digit millions. The tables demand maintain turned together with the carriers are getting marketplace ability over Silicon Valley - together with this is in all likelihood the quickest together with easiest house to exert to a greater extent than or less power.
I remember Reed Hasting wasted his few million.
Seeking different opinions every bit I demand maintain been incorrect often.
John
No seat inwards Comcast, Netflix. Long Verizon.
POSTSCRIPT: The outset comment linked this article. VERY USEFUL AND PROVES I KNOW LESS THAN I THINK I DO ABOUT THESE ISSUES.
John
===
Verizon took the FCC to courtroom on meshing neutrality together with won.
The big potential loser was Netflix. Under the former rules [the ones that the courtroom overruled] tier i meshing providers similar Comcast or Verizon had to deliver Netflix packets the same trend every bit they delivered whatever other packets (on landlines anyway) - together with that meant that they could non selectively deadening Netflix packets. If they were non allowed to selectively deadening Netflix packets together with then they couldn't accuse Netflix for the privilege of having their information delivered.
The declaration for slowing them is that Netflix uses thus much - together with - thus grade Verizon together with others - they should "pay their share". [Of course of report the counter declaration is that when I purchase my capacity I am paying for information to survive delivered to me - together with I demand maintain paid for all data, non all information except Netflix...]
Winning the courtroom example had to survive a positive for Verizon (that is why they took it to court). And it had to survive a negative for Netflix (the close probable political party to survive charged). You wouldn't disclose that inwards the stocks though - Netflix is upwards hard, Verizon non thus much.
Comcast had to a greater extent than argue to dislike Netflix than Verizon though. After all Netflix competes amongst Comcast's gist service (video delivery) and Netflix has but given Comcast a few 1000000 dollars - together with seemingly for no reason.
Now Reed Hastings is a clever human being - together with he is non inwards the trouble concern of giving away millions of dollars.
So I presume he did it for a reason.
And I remember it is this. The argue is to ready a price. Influenza A virus subtype H5N1 depression price. The lower the improve - because afterwards this they demand maintain the serious negotiation amongst Verizon. [And Verizon took the regime to courtroom together with won - which leads yous to remember that Verizon is probable to survive aggressive.]
Comcast knew they were non entitled to a brass razoo - together with Netflix was giving them a few 1000000 dollars. From Comcast's perspective that was piece of cake [take the gift]. The amount looks low. Comcast manages to await reasonable (and I don't unremarkably lay the words reasonable together with Comcast inwards the same sentence).
And Netflix sets a depression price.
It's a negotiating ploy.
But I don't believe it volition work.
Lowell McAdam is unlikely to autumn for it. He is non going to settle for single-digit millions. The tables demand maintain turned together with the carriers are getting marketplace ability over Silicon Valley - together with this is in all likelihood the quickest together with easiest house to exert to a greater extent than or less power.
I remember Reed Hasting wasted his few million.
Seeking different opinions every bit I demand maintain been incorrect often.
John
No seat inwards Comcast, Netflix. Long Verizon.
POSTSCRIPT: The outset comment linked this article. VERY USEFUL AND PROVES I KNOW LESS THAN I THINK I DO ABOUT THESE ISSUES.
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