Comcast Is Bullying Netflix Partners Into Paying a Toll to Deliver Streaming Video [Bullies]

Level 3 Communications, the networking company that delivers streaming video to Netflix users, says that Comcast is demanding a ” recurring fee” for the transmission of such videos to its subscribers. This, it will go without saying, is extremely shitty news.

Level 3, who recently signed a deal to become the principle provider for streaming Netflix content, was pressured by Comcast to pay a ” recurring fee” ” to transmit Internet online movies and other content to Comcast’s customers who request such content.” After a number of days of negotiating, Level 3 paid the cost, ensuring uninterrupted service for Netflix subscribers.

This is presumably the first volley in what is going to be an extended battle between companies like Netflix and broadband providers, the vast majority of whom have their own video on demand services to peddle. And this sort of thing is strictly the rationale that net neutrality-ensuring that internet providers don’t discriminate in how they deliver their content-has been and may remain this type of big deal going forward. When service providers strong arm comparatively little guys like Netflix (and the partners upon whom Netflix relies, like Level 3) into paying higher fees, that turbulence eventually shakes right down to the buyer, either within the variety of higher prices or interrupted service. Big corporate greed ends up screwing John Q. Public-it’s nothing new, but it surely’s always frustrating.

Thomas Stortz, Level 3′s chief legal officer, said this in an announcement earlier today:

Level 3 believes Comcast’s current position violates the spirit and letter of the FCC’s proposed Internet Policy principles and other regulations and statutes, in addition as Comcast’s previous public statements about favoring an open Internet. While the network neutrality debate in Washington has interested by what actions a broadband access provider might take to filter, prioritize or manage content requested by its subscribers, Comcast’s decision goes well past this. With this action, Comcast is preventing competing content from ever being brought to Comcast’s subscribers at all, unless Comcast’s unilaterally-determined toll is paid – despite the fact that Comcast’s subscribers requested the content. With this action, Comcast demonstrates the danger of a ‘closed’ Internet, where a retail broadband Internet access provider decides whether and how their subscribers interact with content.

Level 3 says they’ll be taking the matter to government regulators soon-hopefully there will likely be sufficient outrage at some point soon within the process to get Comcast to go into reverse. And maybe this will likely give the folks at the FCC some pause before allowing the pending Comcast/NBC Universal mega-merger to really struggle through. [ NYT ]

Image credit Ross Catrow

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This post is tagged: broadband providers, level 3 communications, Network Neutrality, networking company, policy principles, uninterrupted service