Unabogie
Philosopher
http://mediadecoder.blogs.nytimes.c...comcast-toll-threatens-online-video-delivery/
Ok, so maybe Netflix can afford to pay this fee, but can any smaller website owners? If not, then your innovative, original website is put at an immediate disadvantage against other, wealthier web companies. It's not about who has the best content or the best ideas. If you don't pay Comcast's fee, your content will be "managed" out of existence.
Level 3 in essence operates a highway that connects to those ramps and handles traffic to and from individual Web sites. Comcast customers rely on the company’s on- and off-ramps from that highway. With nearly 17 million broadband Internet customers, Comcast is the nation’s largest such service provider.
The scuffle between the two started on Nov. 19, when Level 3 says Comcast demanded a recurring fee to “transmit Internet online movies and other content to Comcast’s customers who request such content.”
Three days later, under pressure from Comcast, “Level 3 agreed to the terms, under protest, in order to ensure customers did not experience any disruptions,” Mr. Stortz said.
Mr. Stortz did not cite Netflix in his statement. But just a week before Comcast’s demand, Level 3 announced a multiyear deal to support Netflix’s rapidly growing streaming service.
A recent study found that at peak times, Netflix represented 20 percent of Internet download traffic in the United States. That makes it a de facto competitor for incumbent distributors like Comcast and Time Warner Cable, which are eager to protect both the subscription television business and the emerging video-on-demand business.
Ok, so maybe Netflix can afford to pay this fee, but can any smaller website owners? If not, then your innovative, original website is put at an immediate disadvantage against other, wealthier web companies. It's not about who has the best content or the best ideas. If you don't pay Comcast's fee, your content will be "managed" out of existence.