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Cable Companies: We're Afraid Netflix Will Demand Payment From ISPs 200

Posted by timothy
from the who-pays-whom-for-what dept.
Dega704 (1454673) writes While the network neutrality debate has focused primarily on whether ISPs should be able to charge companies like Netflix for faster access to consumers, cable companies are now arguing that it's really Netflix who holds the market power to charge them. This argument popped up in comments submitted to the FCC by Time Warner Cable and industry groups that represent cable companies. (National Journal writer Brendan Sasso pointed this out.) The National Cable & Telecommunications Association (NCTA), which represents many companies including Comcast, Time Warner Cable, Cablevision, Cox, and Charter wrote to the FCC:

"Even if broadband providers had an incentive to degrade their customers' online experience in some circumstances, they have no practical ability to act on such an incentive. Today's Internet ecosystem is dominated by a number of "hyper-giants" with growing power over key aspects of the Internet experience—including Google in search, Netflix and Google (YouTube) in online video, Amazon and eBay in e-commerce, and Facebook in social media. If a broadband provider were to approach one of these hyper-giants and threaten to block or degrade access to its site if it refused to pay a significant fee, such a strategy almost certainly would be self-defeating, in light of the immediately hostile reaction of consumers to such conduct. Indeed, it is more likely that these large edge providers would seek to extract payment from ISPs for delivery of video over last-mile networks."
Related: an article at Gizmodo explains that it takes surprisingly little hardware to replicate (at least most of) Netflix's current online catalog in a local data center.
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Cable Companies: We're Afraid Netflix Will Demand Payment From ISPs

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