The Netflix Dilemma

December 1, 2010 § Leave a comment

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The Consumerist reports that Comcast is now charging delivery fees to Netflix customers.

The situation is this:

A company called Level 3 was hired by Netflix to deliver movies and TV shows to customers, but Comcast (the largest cable TV company in the U.S.) has set up what many people are calling an Internet “toll booth,” which charges Level 3 anytime a customer orders something.

Hmm, it sucks that Comcast views charging the middleman as the way to go in this issue. It doesn’t seem to be fair–if they absolutely have to tax, shouldn’t they tax individual Netflix customers?

This new development has sparked a mini comment war, and Comcast commented on Level 3 by saying:

“To be lasting, business relationships should be mutually beneficial.” (via)

The current economic model hardly seems “mutually beneficial” to me.

Additional article here.




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