Friday, July 3, 2015

The good news about Comcast and Netflix is actually bad news

Comcast and Netflix have a deal.

The good news about Comcast and Netflix is actually bad news


It was just 10 days ago that I was telling you concerns that Comcast was "throttling" Netflix viewers over its Internet was a prime example of why the Comcast-Time Warner Cable. I suspect Comcast was feeling some heat over the complaints, and so now there's this:

(Reuters) - Comcast Corp customers are about to get improved streaming service from Netflix after the two companies announced on Sunday an agreement to give Netflix a direct connection to the broadband provider.

This agreement means that Netflix will deliver its movies and TV programs to Comcast's broadband network as opposed through third party providers, giving viewers faster streaming speeds for watching movies and TV programs.

Soooo...that's good news? Maybe not. Presumably, if I know my capitalism, and I think I do, the money that Netflix is paying Comcast ("Hey, nice streaming movie service ya got a shame if anything happened to it") will be passed onto us, the consumers, and if the merger with TWC goes through Comcast will have even more bargaining power to use against online providers like Netflix than it has today. (I learned a new word this weekend -- monopsony. You should learn it, too.)

That's scary for regular viewers. But "House of Cards"' Frank Underwood would be so proud.

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About this blog
Will Bunch, a senior writer at the Philadelphia Daily News, blogs about his obsessions, including national and local politics and world affairs, the media, pop music, the Philadelphia Phillies, soccer and other sports, not necessarily in that order.


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