An in-depth look at that Netflix-Comcast deal

Dan Rayburn breaks it down with some context and history and gets right to the point.

The reason for the poor quality streaming is that Cogent refuses to pay Comcast to add more capacity, even though Cogent is taking Netflix’s money for the service. Cogent is charging Netflix for a service it can’t deliver.

So, the deal with Comcast may not be as bad as it seems at first glance.

Comcast conquers Netflix

From the Wall Street Journal:

Netflix Inc. has agreed to pay Comcast Corp. to ensure Netflix movies and TV shows stream smoothly to Comcast customers, a landmark agreement that could set a precedent for Netflix’s dealings with other broadband providers, people familiar with the situation said.

This sets a dangerous precedent, but I doubt Netflix had any alternatives based on this:

Netflix Chief Executive Reed Hastings decided to strike the deal after Netflix saw a deterioration in streaming speeds for Comcast subscribers. According to Netflix data published in January, the average speeds of Netflix’s prime-time streams to Comcast subscribers had dropped 27% since October. Mr. Hastings didn’t want streaming speeds to deteriorate further and become a bigger issue for customers, the people said.