RE: kreeping the internet free?
July 21, 2014 at 3:46 pm
(This post was last modified: July 21, 2014 at 4:14 pm by StealthySkeptic.)
The problem with your reasoning is that not everybody is using the same Internet "pipe," if you will, or paying the same rate for the same amount of Internet speed. Cable companies all use different cables and deliver different speeds based on the tier of plan you select. It comes out of similar sources in a geographical area as you point out (the Tier 1) but I'll explain what I mean in a moment.
Say you pay for Comcast's XFINITY Performance Starter plan in Washington DC, which gets you 6 megabits (Mb)/second of download speed (which is 0.75 Megabytes (MB)/second- in case you're curious, a MB is eight Mb) for $49.99/month. Meanwhile, Netflix requires a minimum of 0.5 Mb/s and DVD quality video is available at the minimum recommended speed of 1.5 Mb/s.
Then say somebody is using a speedier plan at say $99.99/month and starts binging House of Cards. Unless everybody is watching House of Cards at the same time and overwhelms the Tier 1 ISP, if it holds to your usual 6 Mbps you won't get 1080p SuperHD video (minimum for that is 7 Mb/s), but you'll get pretty close. The worst that happens is that things look heavily artifacted.
Meanwhile, the guys or gals hogging the bandwidth will probably get throttled (whereby the ISP squeezes your Internet speed so that you aren't taking up as much bandwidth). Since you're just using the 6 Mbps connection and are not a part of the problem, if they started jacking up the prices on everybody it would obviously be unfair and people would start forming angry mobs and switching to FiOS- and for good reason. So obviously this rationale is illogical.
That's because in addition to more reasonable measures such as pitching bundles hard and desperately trying to increase the value of cable TV (with FiOS Quantum and the newest tier of XFINITY you can now record 12 and 15 shows at once and store 200 hours of HD shows on a DVR for instance), Comcast seems to have a more nefarious plan that will destroy net neutrality if the government doesn't step in.
What Comcast is proposing to do is to demand more money from Netflix to skip the Tier 1 middleman and jack directly into Comcast's network. This would in theory increase the speed and reliability of Netflix video. But it would pose an antitrust problem and a threat to the future of the Internet because Comcast, through it's 100% ownership of NBCUniversal, owns a stake in Hulu, a direct competitor to Netflix.
Comcast would then waive the higher prices for Hulu to do the exact same thing so it has a competitive advantage over Netflix because Netflix would be forced to pass the extra cost on either by closing more DVD distribution centers, eating its source of hard income that is subsidizing the high prices studios are asking for their content (to cover their own asses as disc sales and digital ownership of movies and TV shows begins to decline), or as a price increase to its customers. Either way this would make Hulu the more attractive choice in terms of price. (The last time Netflix tried to mess with the pricing structure with the disastrous "Qwikster" spinoff of its DVD-by-mail service, it caused a mutiny that the company is only just starting to recover from. Imagine what would happen...)
Plus Comcast owns a video on demand service that obviously is given priority either through the cable TV side or the Internet side of the business that would not be affected. So Comcast would start squeezing sites that are its direct competitors, eliminating the platform agnosticism that has allowed the Internet to not become gated like TV was when the 2009 digital transition happened.
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Sorry for the long post. (I'm a bit of an encyclopedia when it comes to the history of media technology lol).
TL;DR version: The reason why this is a major problem is because Comcast doesn't have an actual reason for trying to force its competitors to pay more money for higher guaranteed speeds other than to promote its own services.
Luke: You don't believe in the Force, do you?
Han Solo: Kid, I've flown from one side of this galaxy to the other, and I've seen a lot of strange stuff, but I've never seen *anything* to make me believe that there's one all-powerful Force controlling everything. 'Cause no mystical energy field controls *my* destiny. It's all a lot of simple tricks and nonsense.
Han Solo: Kid, I've flown from one side of this galaxy to the other, and I've seen a lot of strange stuff, but I've never seen *anything* to make me believe that there's one all-powerful Force controlling everything. 'Cause no mystical energy field controls *my* destiny. It's all a lot of simple tricks and nonsense.