FlyerQ wrote:Both of these arguments have merit and my personal opinion is the answer lies in the middle. Regardless, sometimes disruptive business models fuel innovation, lower costs, and benefit consumers and sometimes they fail.
My problem is that neither company is openly having the conversation, instead using deceptive and misleading public communications. While this may not be surprising given whatever deals are struck will likely represent a new and prolonged status quo this power struggle leaves customers of both companies unable to attain the service they have paid to receive.
Good explanation. I think it is worth adding why I (and a lot of the tech community) tend to sympathize with Netflix besides the fact that we like disruption.
- ISPs have teneded to treat customers poorlly. I think this is a bit overblown and affected by previous trama sometimes since a lot of people for 99% of the year have no problems. Still ISPs aren't renowned for being customer friendly. Netflix has the opposite reputation.
- Even if the debate was more honest, pricing appropiate network infastucture costs for a given amound of traffic will be messy and hard for the consumer to work out what is fair/ appropiately apply pressure. One direction pricing tends to be much more transparent and I think there are other ways to charge heavier users more. (tiers, or dare I even say it, reasonibly priced metetered charging)
- ISPs have a monopololy or duopoloy in many markets meaning in any fight between the two companies won't be fair.
- ISPs have their hand in the video buisness while Netflix is singularly focused (for now) meaning they have more motive to behave badly. Netflix wouldn't want to totally destroy ISPs since they need them, ISPs would totally be fine with Netflix dying.
- This has similarities to the overall Net Neutrality debate and people are anxious about cedeing ground.
I'm also curious if as cloud computing prolifierates if we see a future Verizon change tune quite a bit as they deliver more upstream content. Even if Netflix doesn't act on its threat to use peering as a delivery method, a future company surely will. I don't see Verizon eagar to pay those fees. (actually they might hapily just let those connections saturate if it is a competing service and accept the blame/responsibility but prefer it to the competition)