Netlfix has cut a deal with Comcast. Netflix will pay the cable provider an undisclosed amount of money, and in return their movies and TV shows will stream faster. This shows that there is a shifting balance of power, and it is shifting in favor of internet service providers. Consumers will likely see an increase in price too.
Comcast, and other cable providers appear that they will start being more aggressive in how content streams in their pipes. This is thanks to a mid-January federal appeals court ruling that tossed out net neutrality rules.
Netflix describes the agreement as mutually beneficial, and that Comcast will now provide high-quality video experience to customers for years to come.
The agreement between Comcast and Netflix has been in the works for months now, but it comes at a controversial period of time, as Comcast is in the process of buying Time Warner Cable for more than $40 billion. Anti-trust regulators will certainly be scrutinizing the merger. This means that Comcast's influence over content set through its network will be heavier than ever.
Some say that the case now is that there is an internet service provider that is telling providers of content that if they want their service to work, then they will have to pay an extra fee. Some argue that Comcast has now injected itself into a relationship between a company and its customers.
Comcast customers have been very vocal about how slow streaming speeds for Netflix are, and Netflix has even assessed the transmissions speeds of different ISPs, including Comcast.
Out of 17 ISPs, Comcast ended up being rated 14, while Verizon DSL ranked last.
Some believe that the slowdown occurred when Netflix's data made its way to Comcast's network, and traffic became heavily congested, due to customers ordering content individually.
The deal between the two companies may only be the beginning, as other internet service providers may look to enter into similar agreements with Netflix, and maybe even other content providers. This means that companies like Netflix will have to pay in order for their content to stream as smooth as possible.
Netflix Reaches Deal With Comcast