Netlix's CEO is not happy with 2014 Comcast deal
Earlier this year, Comcast and Netflix struck up a deal to ensure that subscribers to the online streaming service won't have too many issues with viewing content. This came about after Comcast and Time Warner Cable merged. Though this deal sounds good, but Netflix CEO Reed Hastings took to his company's official blog to reveal that he isn't too happy about this new deal.
"Once Netflix agrees to pay the ISP interconnection fees, however, sufficient capacity is made available and high quality service for consumers is restored. If this kind of leverage is effective against Netflix, which is pretty large, imagine the plight of smaller services today and in the future. Roughly the same arbitrary tax is demanded from the intermediaries such as Cogent and Level 3, who supply millions of websites with connectivity, leading to a poor consumer experience," Hastings said in his statement. "Without strong net neutrality, big ISPs can demand potentially escalating fees for the interconnection required to deliver high quality service. The big ISPs can make these demands - driving up costs and prices for everyone else - because of their market position. For any given U.S. household, there is often only one or two choices for getting high-speed Internet* access and that's unlikely to change. Furthermore, Internet access is often bundled with other services making it challenging to switch ISPs. It is this lack of consumer choice that leads to the need for strong net neutrality.
He added: "Netflix believes strong net neutrality is critical, but in the near term we will in cases pay the toll to the powerful ISPs to protect our consumer experience. When we do so, we don't pay for priority access against competitors, just for interconnection. A few weeks ago, we agreed to pay Comcast and our members are now getting a good experience again. Comcast has been an industry leader in supporting weak net neutrality, and we hope they'll support strong net neutrality as well."