Could Comcast Kill Netflix?

The wonderful world of Instant Streaming movies on Netflix could soon come crumbling down-all thanks to Comcast. According to news sources, Comcast is raising all kinds of heck with its recent demands and "abuses of power" as one of the biggest cable providers in the country. The latest involves its insistence that Level 3 Communications pay fees in order to stream Netflix instant movies via Comcast's broadband service.

In case you're wondering exactly who this "Level 3" character is, it's essentially the provider of Internet services, broadband, and other communication services. It also happens to partner with Netflix's streaming movies.

So, picture this scenario: You're sitting at home surfing the net using Comcast as your Internet service provider. You stroll on over to Netflix, only to discover that your access to the site has been blocked. You can log on and watch your favorite streaming movies-if you pay an extra fee (to Comcast) for the access to Netflix.

(Say it isn't so!)

If Comcast had its way, you'd pay for their Internet service. But then pay again if you want to stream a movie that the cable company happens to offer on its own. Most people who have Netflix subscriptions are definitely going to watch an Instant movie for "free", rather than Pay-Per-View on Comcast's service. And Comcast no likey.

In a nutshell, the cable giant wants to charge its Internet customers a recurring fee for those who are downloading media that competes with its cable viewing options. To avoid disturbing the peace amongst millions of Netflix streaming customers, Level 3 Communications absorbed the cost; but it eventually trickled down to Netflix customers anyway.

So even if you're a customer of Netflix and not Comcast, you've probably already felt the effects. Netflix has started charging more money for their movie rental plans. In many cases, the increase isn't substantial enough make die-hard fans turn away. But they are most definitely taking notice. This press release from Level 3 Communications explains the beef between the two companies.

It looks like things are in the hands of the FCC and a little thing called Net Neutrality. All that free space out there in cyberland isn't "free" anymore. The bottom line is that technology has done such a great job entertaining us humans, that the companies responsible for our enjoyment seem to be stepping on one another's toes. Indeed, there are other sites on Comcast's warpath. Google, iTunes, and YouTube could be under fire. And according to the Huffington Post, the government might just allow Comcast to move forward with some other swanky moves. Can you imagine what it would be like if Comcast actually bought NBC? Sounds far-fetched. But the threat is definitely valid, and already on the table.

The virtual buffet of access to cyberspace could soon become a great big a la carte menu, with the prices of entrees constantly fluctuating. If you have found any of this confusing, you're amongst millions. The Information Highway has become so crowded that it's difficult to determine who's responsible for what. But once you start messing with the public's ability to stream episodes of "Dexter," protests are not far away.

Read between the lines of various news reports, and you can quickly figure out why this little snafu between Comcast and Level 3 Communications isn't so little. Established Internet "gatekeepers" may soon be able to dictate more and more-where and how you obtain all that online greatness. Streaming movies may be just one item stricken from the Internet menu.

SOURCES:

www.netflix.com
www.level3.com
www.huffingtonpost.com