The battle for TV, part two: paying for bandwidth
TweetFollow Us on Twitter

The battle for TV, part two: paying for bandwidth

Many folks think that Apple should and will buy Netflix. I personally doubt it, but I can see the advantages for both companies. Regardless, pricing for Netflix and similar services may see a price hike.

On Nov, 19, Comcast informed Level 3, an Internet backbone provider that handles streaming for Netflix, 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," says "Fortune (). "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. This sets a scary precedent.  If Comcast can charge an extra fee to Level 3 for hosting Netflix content, it could (and probably will at some point) charge Google to stream YouTube movies or Apple to broadcast iTunes content.  Because Comcast owns the last mile, they hold the keys."

In its defense, Comcast says it had to do something because of all the bandwidth Netflix is hogging. "Level 3 has misportrayed the commercial negotiations between it and Comcast," Joe Waz, Comcast's senior vice president for external affairs, said in a statement. "This has 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 competitors in delivering the same types of traffic to our customers."

Prior to the Netflix deal, Comcast and Level 3 had a typical industry peering arrangement, notes "CNET" (http://news.cnet.com/8301-1023_3-20024070-93.html). Level 3 is regularly carries traffic that originates and terminates on Comcast's broadband network. Under their previous arrangement, the companies essentially swapped traffic since both networks generated equal amounts of traffic.

However, with the Netflix deal, the balance of traffic between the two companies will shift dramatically, says "CNET." Netflix has been said to generate 17 percent of traffic on the Internet at peak times in the U.S. Comcast said in its statement that it expects to receive five times more traffic from Level 3 as part of this new arrangement.

Netflix's bandwith consumption is likely to increase still more. The company recently landed another major content deal with Disney and ABC. In exchange for a minimum 15-day delay between a first TV appearance and the online version, Netflix will get a deeper catalog that includes prior-season access to current shows like "Grey's Anatomy" and full seasons of past shows like "Lost" and "Scrubs." Disney's TV content is expanding, and ABC Family is reaching the Internet for the first time.

And companies like Netflix, Hulu and something-I-think-Apple-may-offer will only continue to grow as cable and satellite subscriptions decrease. It's a natural progression. With the exception of sports and local TV shows, you can get most of the same shows and movies you want from Internet TV for a fraction of the price of cable or satellite.

The long-term future of television viewing is the Internet. And that probably means higher pricing for Internet access. However, I'd pay more (at least some more) if I could drop cable TV entirely.

-- Dennis Sellers

 
AAPL
$106.98
Apple Inc.
-0.36
MSFT
$46.05
Microsoft Corpora
-0.57
GOOG
$550.31
Google Inc.
+0.98

MacTech Search:
Community Search:

Software Updates via MacUpdate

Cocktail 8.0.1 - General maintenance and...
Cocktail is a general purpose utility for OS X that lets you clean, repair and optimize your Mac. It is a powerful digital toolset that helps hundreds of thousands of Mac users around the world get... Read more
LibreOffice 4.3.3.2 - Free Open Source o...
LibreOffice is an office suite (word processor, spreadsheet, presentations, drawing tool) compatible with other major office suites. The Document Foundation is coordinating development and... Read more
VMware Fusion 7.0.1 - Run Windows apps a...
VMware Fusion allows you to create a Virtual Machine on your Mac and run Windows (including Windows 8.1) and Windows software on your Mac. Run your favorite Windows applications alongside Mac... Read more
OneNote 15.3.2 - Free digital notebook f...
OneNote is your very own digital notebook. With OneNote, you can capture that flash of genius, that moment of inspiration, or that list of errands that's too important to forget. Whether you're at... Read more
Audio Hijack Pro 2.11.4 - Record and enh...
Audio Hijack Pro drastically changes the way you use audio on your computer, giving you the freedom to listen to audio when you want and how you want. Record and enhance any audio with Audio Hijack... Read more
Iridient Developer 3.0.0 beta 3 - Powerf...
Iridient Developer (was RAW Developer) is a powerful image conversion application designed specifically for OS X. Iridient Developer gives advanced photographers total control over every aspect of... Read more
TextWrangler 4.5.11 - Free general purpo...
TextWrangler is the powerful general purpose text editor, and Unix and server administrator's tool. Oh, and also, like the best things in life, it's free. TextWrangler is the "little brother" to... Read more
NeoFinder 6.6 - Catalog your external me...
NeoFinder (formerly CDFinder) rapidly organizes your data, either on external or internal disks, or any other volumes. It catalogs all your data, so you stay in control of your data archive or disk... Read more
Chromium 38.0.2125.111 - Fast and stable...
Chromium is an open-source browser project that aims to build a safer, faster, and more stable way for all Internet users to experience the web. FreeSMUG-Free OpenSource Mac User Group build is... Read more
Default Folder X 4.6.11 - Enhances Open...
Default Folder X attaches a toolbar to the right side of the Open and Save dialogs in any OS X-native application. The toolbar gives you fast access to various folders and commands. You just click... Read more

Latest Forum Discussions

See All

Audio Defence : Zombie Arena (Games)
Audio Defence : Zombie Arena 1.0 Device: iOS Universal Category: Games Price: $4.99, Version: 1.0 (iTunes) Description: A zombie shooter audio game. Made from gut-wrenching 3D binaural sound, for a new kind of weird immersion. You... | Read more »
RPG Asdivine Hearts (Games)
RPG Asdivine Hearts 1.1.0 Device: iOS Universal Category: Games Price: $3.99, Version: 1.1.0 (iTunes) Description: SPECIAL PRICE50% OFF (USD 7.99 -> USD 3.99)!!! Travel alongside four companions and a cat in the adventure of a... | Read more »
Haunt the House: Terrortown (Games)
Haunt the House: Terrortown 1.0.1 Device: iOS Universal Category: Games Price: $.99, Version: 1.0.1 (iTunes) Description: 66.6% OFF! SPECIAL SPOOKY HALLOWEEN LAUNCH PRICE! 66.6% OFF! ...What was that sound? Is somebody there? | Read more »
SAS: Zombie Assault 4 Review
SAS: Zombie Assault 4 Review By Jennifer Allen on October 30th, 2014 Our Rating: :: FLAWED SHOOTERUniversal App - Designed for iPhone and iPad Shoot everything that moves in this fun, if flawed, twin-stick shooter.   | Read more »
Naailde the Witch Review
Naailde the Witch Review By Amy Solomon on October 30th, 2014 Our Rating: :: PITCH-PERFECT STORYTELLINGUniversal App - Designed for iPhone and iPad Marvelous storytelling, narration, and moving illustrations make this storybook... | Read more »
1st & Goal Review
1st & Goal Review By Andrew Fisher on October 30th, 2014 Our Rating: :: FOR THE D&D LOVING QBUniversal App - Designed for iPhone and iPad 1st & Goal is a board gamer’s football game, a football fan’s board game, and... | Read more »
French Developer Pated Unveils Seashine
French Developer Pated Unveils Seashine Posted by Ellis Spice on October 30th, 2014 [ permalink ] French one-man studio Pated has unveiled Seashine, “a poetic journey into the abyss.” Players take on the role of a jellyfish strugglin | Read more »
Agents of Storm: Tips, Tricks, and Strat...
Calling all agents: Would you like to see what we thought of this rather pretty base builder? Check out our Agents of Storm review! Have you downloaded Agents of Storm, been bowled over by the graphics, and aren’t quite sure what to do next? Never... | Read more »
Any.DO 2.0 Hopes to Help Manage Producti...
Any.DO 2.0 Hopes to Help Manage Productivity Posted by Ellis Spice on October 30th, 2014 [ permalink ] iPhone App - Designed for the iPhone, compatible with the iPad | Read more »
Base Busters Review
Base Busters Review By Jennifer Allen on October 30th, 2014 Our Rating: :: FUN BUT RESTRICTED MIXUniversal App - Designed for iPhone and iPad Mixing up two forms of tower defense gaming and collectible cards, Base Busters is a fun... | Read more »

Price Scanner via MacPrices.net

Apple Regains Momentum As Windows Stutters An...
The latest smartphone sales data from Kantar Worldpanel ComTech, for the three months to March 2014, shows Apple performing strongly in the first quarter of the year, with sales bouncing back in... Read more
Worldwide Smartphone Shipments Increase 25.2%...
New smartphone releases and an increased emphasis on emerging markets drove global smartphone shipments above 300 million units for the second consecutive quarter, according to preliminary data from... Read more
Apple now offering refurbished 2014 15-inch M...
The Apple Store is now offering Apple Certified Refurbished 2014 15″ Retina MacBook Pros for up to $400 off the cost of new models. An Apple one-year warranty is included with each model, and... Read more
Apple drops prices on refurbished 2013 Retina...
The Apple Store has dropped prices on 2013 Apple Certified Refurbished 13″ and 15″ Retina MacBook Pros, with Retina models now available starting at $999. Apple’s one-year warranty is standard, and... Read more
New 2.8GHz Mac mini on sale for $949, save $5...
Abt Electronics has the new 2.8GHz Mac mini in stock and on sale for $949.05 including free shipping. Their price is $50 off MSRP, and it’s the lowest price available for this model from any reseller... Read more
Sale! 3.7GHz Quad Core Mac Pro available for...
 B&H Photo has the 3.7GHz Quad Core Mac Pro on sale for $2649 including free shipping plus NY sales tax only. Their price is $350 off MSRP, and it’s the lowest price for this model from any... Read more
Mujjo Steps Up The Game With Refined Touchscr...
Netherlands based Mujjo have just launched their Refined Touchscreen Gloves, stepping up their game. The gloves feature a updated elegant design that takes these knitted gloves to the next level. A... Read more
Sale! Preorder the new 27-inch 5K iMac for $2...
 Abt Electronics has the new 27″ 3.5GHz 5K iMac on sale and available for preorder for $2374.05 including free shipping. Their price is $125 off MSRP, and it’s the lowest price available for this... Read more
Simplex Solutions Inc. Brings Secure Web Surf...
New York based Simplex Solutions Inc. has announced the release and immediate availability of Private Browser 1.0, its revolutionary new secure web browser developed for iPhone, iPad and iPod touch... Read more
Save up to $180 off MSRP with an Apple refurb...
The Apple Store has Apple Certified Refurbished 2014 MacBook Airs available for up to $180 off the cost of new models. An Apple one-year warranty is included with each MacBook, and shipping is free.... Read more

Jobs Board

Position Opening at *Apple* - Apple (United...
**Job Summary** Every day, business customers come to the Apple Store to discover what powerful, easy-to-use Apple products can do for them. As a Business Leader, Read more
Sr. Manager, *Apple* Deployment Programs fo...
**Job Summary** Apple is seeking candidates for a new position on the Education Content and Technology team. iPad and Mac is in the hands of millions of teachers and Read more
*Apple* Solutions Consultant (ASC) - Apple I...
…important role that the ASC serves is that of providing an excellent Apple Customer Experience. Responsibilities include: * Promoting Apple products and solutions Read more
*Apple* Solutions Consultant (ASC) - Apple I...
…important role that the ASC serves is that of providing an excellent Apple Customer Experience. Responsibilities include: * Promoting Apple products and solutions Read more
*Apple* Solutions Consultant (ASC) - Apple I...
…important role that the ASC serves is that of providing an excellent Apple Customer Experience. Responsibilities include: * Promoting Apple products and solutions Read more
All contents are Copyright 1984-2011 by Xplain Corporation. All rights reserved. Theme designed by Icreon.