Tom Wheeler and the FCC have changed their position on net neutrality, drafting new rules that would allow internet service providers to charge companies for faster delivery of their content. Finally, Comcast and Netflix will get a chance to make some money. Wheeler strenuously denies that his agency is “gutting the open internet rule,” but it’s hard to see this decision making the internet a more equitable place. Perhaps it will be exactly as free and egalitarian as before. Or maybe we are not totally crazy to worry that letting Comcast—which owns NBC and Hulu—buy TimeWarner Cable, owned by AOL and what used to be Warner Bros., will result in some kind of collusion.
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Netflix pays Comcast millions to restore streaming speed
A mere 10 days after Comcast agreed to buy Time-Warner Cable, the cable/internet giant has announced a multimillion-dollar deal with Netflix. Here’s how it works: Netflix pays Comcast several million dollars each year, and the 25% drop in streaming speed that has plagued Netflix subscribers who get their internet from Comcast will go away. It’s probably a coincidence that this unprecedented deal comes three months after a circuit court judge struck down the FCC’s authority to enforce net neutrality. Welcome to the new internet. Netflix, which accounts for as much of 30% of total internet traffic during peak hours, now has to pay to play.