Level 3 and Comcast are having a very public battle about content control and money, and it is important because it involves Netflix. In a strongly worded press release today, Level 3 said that Comcast wants a recurring fee to transmit movies online. Thomas Stortz, chief legal officer of Level 3, said in the press release:
"On November 19, 2010, Comcast informed Level 3 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. 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."
While the company agreed to the terms on November 22, it said that it do so "under protest." Level 3 recently signed a deal to be the primary content delivery network for Netflix’s online streaming service. Meanwhile, Comcast took issue with Level 3's portrayal of the deal. The company issued the following terse statement via its blog:
Level 3 has inaccurately portrayed the commercial negotiations between it and Comcast. These discussions have 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 (CDN) competitors in delivering the same types of traffic to our customers. Comcast offered Level 3 the same terms it offers to Level 3’s CDN competitors for the same traffic. But Level 3 is trying to gain an unfair business advantage over its CDN competitors by claiming it’s entitled to be treated differently and trying to force Comcast to give Level 3 unlimited and highly imbalanced traffic and shift all the cost onto Comcast and its customers.
Source: ZDNet
Comments
Re: Comcast, Level 3 Spar over Movie Content
I don't like Comcast's business practices, but I am a subscriber to their cable & internet packages. I really want a more robust ISP market but I just don't think that will happen.
Re: Comcast, Level 3 Spar over Movie Content
Yeah, that's the crux here. The "let the market decide" argument is valid only when there IS a free market. Absent both competition and regulation, the ISP's are going to walk all over their customers with no repercussions.
Re: Comcast, Level 3 Spar over Movie Content
I hear that. Back when I lived in a trailer park Comcast struck a deal with our park manager, so if we wanted anything above dial up and basic cable it was Comcast or nothing. How is that even remotely a free market?
Re: Comcast, Level 3 Spar over Movie Content
I'm confused. What does Netflix have to do with games? I understand that digital distribution of video games (e.g. Steam) might be next in line if this is allowed (it shouldn't) but at least put that spin on it for those of us who are just joining the conversation.
- Left4Dead
Why are zombies always eating brains? I want to see zombies that eat toes for a living. Undead-related pun intended.
Re: Comcast, Level 3 Spar over Movie Content
Any deal relating to net neutrality has an impact on anyone, not just gamers. Today it's movies, tomorrow music and next week there are extra fees being passed onto gamers as well.
Re: Comcast, Level 3 Spar over Movie Content
I could easily see them throttling connection speeds to the 360 or to PC gamers in an attempt to make them unplayable enough to get people to be paying two or more fees to play one game.
Re: Comcast, Level 3 Spar over Movie Content
Streaming Netflix is available on all three consoles.
Andrew Eisen
Re: Comcast, Level 3 Spar over Movie Content
The next development to watch is the FCC's reaction. Genachowski delayed the December FCC meeting to Dec. 21, in order to try to gain agreement on a response to the April appellate reversal in Comcast v. FCC. Genachowski is trying to find support for FCC authority using its Title I powers (regulating broadband as a non-telecom service) since reclassification as telecom is a non-starter with the new Congress.
Steve Augustino
Kelley Drye
Re: Comcast, Level 3 Spar over Movie Content
At least we can always count on Comcast to make the case for net neutrality. Real abuses are more convincing than hypothetical ones.
Re: Comcast, Level 3 Spar over Movie Content
The problem is, comcast always carefully words its abuses so they fit the narrative of the 'free market solves all problems' crowd, so they manage to give ammo to both sides.
Re: Comcast, Level 3 Spar over Movie Content
Comcast is an ips I will never trust in a million years.
http://www.magicinkgaming.com/
Re: Comcast, Level 3 Spar over Movie Content
I remember comcast's last attempt to get netflix streaming off their network and away from their customers, so I take their explanation with quite a bit of salt.
That was also when I canceled my comcast subscription and had to put up with the service rep trying to politely explain to me that I must be breaking the law since there were no legal streaming services out there besides comcast's own.