Wednesday, February 26, 2014

No Neutrality

The fact that Netflix has paid Comcast for carriage is, perhaps, the most significant event ever in the history of Internet TV.

If Netflix are paying, well, then, throttle YouTube and ask Google to pay (I understand that there are many backroom deals that broker this inter-connect already). And then the BBC, or NBC. Where do you stop ?

Also, think about the dynamics. Netflix pay a huge amount of money for data delivery from source (they largely use Amazon). Now they also pay for delivery. They also pay for the rights to show their programming. Between the three, I would question the ability of the company to be profitable. Indeed, they now have dependencies that are daily eroding their business model.

A TV licence used to be a monopoly. The cost of entry into the Internet TV marketplace is very low. But the cost of doing business is still hugely marginal.