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This is exactly the model that programmers use on Cable Companies, and it's not working. The very reason our cable bills got to be so high is because programmers are charging more and more for distribution rights to their programming via cable companies. Of course, they always hide behind the "its not fair, they are profiting off of us, and we're asking to be compensated fairly, your rates will go up either way". Now, Comcast is using the same rationality on internet traffic networks. Fact is, IF Comcast succeeds, Netflix will be charged more, and eventually Netflix will have to charge us more. Anyone claiming any different isn't seeing the big picture. Companies, regardless of profit, aren't just going to hand that money over, they have a goal to have a certain percentage of every dollar be profit, regardless.
Comcast is essentially metered as well. I pay them a fee, and that gets me up to 250GB of bandwidth per month. Essentially what they are saying is that as long as I get that 250GB from OTHER sources, I'm OK, but if I choose to get it from level 3 (Netflix), then they want to get paid TWICE for it.
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Nov 30, 2010