2 Comments

  1. Mark Hayes
    Posted March 6, 2014 at 1:56 pm | Permalink

    Your commentary is always interesting and Netflix has indeed created a customer experience that exceeds any other media distribution company I've had the pleasure to deal with. I wonder however if NETFLIX has expended it's R&D budget to the detriment of addressing the issue of getting product to the customer. A disturbing agreement between Netflix and Comcast highlights the potential problems that NETFLIX is going to have because of it's dominance in a market that relies upon network bandwidth on the lines owned by the cable companies that it's taking media delivery customers from. The fact that NETFLIX agreed to pay Comcast for the privilige of keeping it's content at high bandwidth levels is concerning. Food for thought is, what could Comcast have done to NETFLIX content had they NOT agreed to pay the requested fees?

  2. Posted March 7, 2014 at 8:49 pm | Permalink

    Hi Mark

    Thanks for your comment. I am unaware of the agreement about which you are referring. I will say this though: Netflix management makes decisions based on data and current and near-term business realities. Comcast and the other cable companies maybe serving for the time being as gatekeepers. Cable companies are extremely worried about the disintermediation that's taking place at the current moment. Most people hate their cable companies. Until companies like Google with its fiber service can disrupt them, Netflix has to play ball with established powers.

    That certainly may change in the next five years as new technologies continue to democratize the Internet.

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