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Will The Comcast Internet Toll Test The Netflix Business Model?

Tyler Durden's picture


As was mentioned briefly yesterday, and all Netflix longs had hoped it would be promptly dead and buried, Comcast has begun imposing a fee on Internet middleman Level 3 Communications Inc., one of the companies that Netflix Inc. has hired to deliver movies and TV shows to Web customers. Bloomberg adds: "Comcast, the largest U.S. cable TV company, has set up an Internet “toll booth,” charging Level 3 whenever customers request content, the Broomfield, Colorado-based company said in a statement yesterday." This could very well be the end to the Netflix business model which so far has had the benefit of near-free streaming content distribution. Of course, this move was inevitable as Netflix is rapidly stealing traditional cable subscribers from precisely the likes of Comcast, whose premium on demand services are unable to compete with the Netflix model (which is based more on marginal churn retention than anything, and as such has very little barriers to entry). Furthermore, traditional distributors of content are also starting to scratch their heads at the cost-benefit analysis of their Netflix relationship. As such, as more and more gates are imposed, and as the cash breakeven suddenly surges for Netflix, what will likely be impaired is not only the firm's cashflow (which as we described recently has been rapidly declining) but to its long-term growth prospects. In a word: nothing good.

More from Bloomberg:

Level 3 plans to complain to U.S. regulators who may enact so-called net-neutrality rules next month. The Federal Communications Commission is seeking to bar phone and cable providers from interfering with legal traffic on their networks. The rules are backed by President Barack Obama and companies led by Google Inc., EBay Inc. and IAC/InterActiveCorp. Phone and cable companies say rules aren’t needed and may hurt investment.

“This action by Comcast threatens the open Internet and is a clear abuse of the dominant control that Comcast exerts in broadband access,” Thomas Stortz, Level 3’s chief legal officer, said in the statement. “With this action, Comcast is preventing competing content from ever being delivered to Comcast’s subscribers at all, unless Comcast’s unilaterally determined toll is paid.”

Comcast, which is seeking regulatory approval to acquire majority ownership of NBC Universal, defended the fee in a statement, saying it is based on “long established and mutually acceptable commercial arrangements” with Level 3’s peers.

Comcast however is not taking this quietly:

Level 3 is preparing to more than double the traffic it puts on the cable provider’s network and has tried to pressure the company into accepting it for free, Joe Waz, Comcast’s senior vice president for external affairs, said in an e-mailed statement.

Level 3 announced on Nov. 11 that it will carry films and TV shows for the Web streaming service offered by Netflix.

Eventually, this will likely mean an FCC ruling on net neutrality:

FCC Chairman Julius Genachowski, in proposing net neutrality rules last year, called for a principle of non-discrimination by Internet-service providers. The FCC will meet on Dec. 21.

“This means they cannot block or degrade lawful traffic over their networks,” Genachowski said.

Public Knowledge and the Media Access Project, two Washington-based advocacy groups, backed Level 3 yesterday. The groups said the request for payment to carry Level 3 traffic shows the need for stronger net neutrality legislation and more scrutiny of Comcast’s NBC deal.

Therefore the question now becomes who has more clout and pull at the FCC: the movie studios and the legacy cable providers, or nascent companies which have carved out a niche which however has no barriers to entry. While the outcome is uncertain, all it takes is for some weakness at NFLX to be taken advantage of by some other companies which has better relationships with content providers, and can provide the same service for a comparable cost. At best, this will be precisely the customer retention test that NFLX bulls claim the company will be able to pass with flying colors. At a forward multiple that is completely meaningless, they better hope they are correct.



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Tue, 11/30/2010 - 15:42 | 765221 Spalding_Smailes
Spalding_Smailes's picture

Tue, 11/30/2010 - 15:48 | 765253 Mr Lennon Hendrix
Mr Lennon Hendrix's picture did not replace pet stores.  Netflix bankrupted Blockbuster/Hollywood video.  Poor example.

Tue, 11/30/2010 - 15:59 | 765277 Spalding_Smailes
Spalding_Smailes's picture

Built on dreams in the market .... Everything is going digital/ in the clouds.

Tue, 11/30/2010 - 16:02 | 765309 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

No way!  Everyone needs entertainment, and netflix > blockbuster.

I will not say it should have the price it does now based on earnings and whatnot, but I could give a rats ass about dollar denominated value.  netflix is one of the only companies that will make it out alive.  and a small disclaimer, I own no shares in netflix, nor have I ever.  Just sayin'.

Tue, 11/30/2010 - 18:08 | 765917 aerojet
aerojet's picture

Actually, what Americans could use is a lot less vapid entertainment and a lot more serious study, or at least turning off the tv, game consoles, and streaming media and cracking a book instead.

Tue, 11/30/2010 - 23:57 | 766882 trav7777
trav7777's picture

it's not an issue of whether people need entertainment, it's a matter of NFLX not controlling the infrastructure and these monopoly organizations like Verizon and Comcast owning the last mile of the internet.

The best part is how we all chipped in so the ISPs can have monopoly on the wires into our houses, now they get to profit from it.  Municipalities paid via debt and taxes to get these lines laid and now the providers can charge what they feel like.

NFLX has done well; this is a matter of Comcast saying, gee, that's a nice business you've got over there, be a shame if something happened to it.

Comcast wants all its customers to get jacked paying for their overpriced VOD.  Sony has a huge title collection on PSN, it's wack priced too.  Vz's VOD is overpriced as well.  But without the infrastructure, NFLX is subject to getting squeezed by both ends.

Wed, 12/01/2010 - 11:47 | 767855 suckapump
suckapump's picture


Tue, 11/30/2010 - 16:19 | 765368 idea_hamster
idea_hamster's picture

The real comparitor is Vonage -- good idea, but nothing that the wire-owners can't do themselves.

In the end (at least near me) the cable company offered a "package" of web+TV+VOIP that cost less than just web+TV.  Is that an antitrust tying violation?  Probably, but who's going to fight that?  Nobody.

VG: $12 --> $3  in one year.

Tue, 11/30/2010 - 19:16 | 766198 dkny
dkny's picture

VG should go to $3 just for the simple reason that they charge an obscene amount of money. I'm paying almost $30/month on basically no calls.

Perhaps it is time to switch to CallCentric to facilitate that decline.

Tue, 11/30/2010 - 15:43 | 765227 MonsterZero
MonsterZero's picture

They own the physical cable, they can ask whatever amount of paper fiat money they want.

Tue, 11/30/2010 - 15:59 | 765290 Ripped Chunk
Ripped Chunk's picture

Hmmmmm. I guess it really is all about political climate?

AT&T    MCI ......recall that little spat having a large effect (eventually erased by "market forces") on telecom.

Tue, 11/30/2010 - 15:59 | 765292 Dr. No
Dr. No's picture

They do and they get it.  My rates just increase last month...

Tue, 11/30/2010 - 16:09 | 765339 MeTarzanUjane
MeTarzanUjane's picture

Exactly. Fuck these cable companies! $70/month for Internet access?!!!

FUCK YOU Cable bitches!

There are enough unemployed peoples to be able to digitize all known channels onto DVD and sell to people out of their trunk at the local Krogers.

Hey, I heard rumors about a Wikileaks IPO? Any truth?

Tue, 11/30/2010 - 16:01 | 765304 tmosley
tmosley's picture

I wonder if they will be surprised when they lose all of their internet customers when they refuse to pay Comcast's charge and they find that their customers can't get Netflix.

Tue, 11/30/2010 - 19:10 | 766167 ebworthen
ebworthen's picture

Good point. 

I'm amazed at the early 20 something's using just their smart phones to watch movies.

Even a laptop with wireless is becoming passe to them.

Comcast had better be careful because they have competition from the phone companies big time; Verizon is pushing a celular broadband connection that I've seen several friends adopt in favor of Comcast.

Wed, 12/01/2010 - 00:01 | 766897 trav7777
trav7777's picture

the wireless providers are capping GBs now...only the grandfathered "unlimiteds" have anything resembling a decent price point.  And that's subject to just having your plan cancelled, fuck you style.

I used 17GB one month on my unlimited ATT PDA plan and I was concerned that if I continue to roll like that, they will just shut me off and say take your business to verizon or else fork over more cash.  As I am right next to a tower, I get 3G+ exceeding 2Mbps and could stream NFLX via a tethered windoze smartphone

Tue, 11/30/2010 - 16:01 | 765310 hewhohesit8s
hewhohesit8s's picture

Shortsighted view.  The percieved value is more and more in "the internet", and less and less in the physical medium.  Comcast will drive their customers into the arms of the telcos unless the telcos are stupid enough to charge tool too.  In that case, new entrants will eat both their lunches. 

Tue, 11/30/2010 - 18:09 | 765925 aerojet
aerojet's picture

IIRC, Americans paid additional taxes for that cable infrastructure, so don't we fucking own it?

Tue, 11/30/2010 - 19:15 | 766182 ebworthen
ebworthen's picture

Agree, the monopolies are just sick.

I miss the days of an Antenna on the roof and having to sit through commercials, not paying out the nose to a monopoly AND having to sit through commercials (what crap!).

Cable television is de-evolving to where there are only 13 channels you can watch and you have to be picky at that - just like back in the day of the Antenna and Rabbit Ear's.

Tue, 11/30/2010 - 19:22 | 766228 dkny
dkny's picture


It is for that reason that I on principle refuse to pay for TV. I mean, heck, why should I be paying to watch ads. And, as you said, almost nothing to watch anyway: "reality" shows as far as the eye can see.

$70/month? Ha!
I'll stick to the OTA Jerry Springer reruns instead of the latest CSI Unemployment Office Division, thank you very much.

Tue, 11/30/2010 - 22:37 | 766666 Doctor sahab
Doctor sahab's picture

I have an antenna in my attic that I've connected to two HDTVs and I get all the local channels for free in HD and surround. You should be able to get a decent reception in most parts of the country.

Wed, 12/01/2010 - 01:21 | 767050 A Nanny Moose
A Nanny Moose's picture

Commericals were the time to get up and make that Swansons T.V. Dinner.

Cable use to be the end-run around commercials. Now we pay, and still get fucked with the propaganda.

Wed, 12/01/2010 - 00:02 | 766901 trav7777
trav7777's picture

yes, we DID pay for that infrastructure.  We used bonds and tax cash to PAY the telcos to lay lines that THEY NOW OWN 100%!  How awsumz is that

Tue, 11/30/2010 - 23:25 | 766786 asteroids
asteroids's picture

Bullshit, the end user pays a fee for use of said cable. It's like leasing a car and only being to drive it where the leasing company tells you to drive.

Tue, 11/30/2010 - 15:43 | 765228 Jim in MN
Jim in MN's picture

Awwwww.  Easy come, easy go.

Not like it's an important stock for the go-go galz around

Tue, 11/30/2010 - 15:44 | 765235 Oh regional Indian
Oh regional Indian's picture

Old money always wins out. The studios will side with who-ever can get their content to the end user.

Clearly a company like Netflix has no business being valued at where it is and since all these biggies work under the same thumb (not Tom), maybe Netflix is going to get replaced in the Holy Trinity by.....GM? It could happen. Go long GM! Today's tip ;-)


Tue, 11/30/2010 - 16:00 | 765296 Ripped Chunk
Ripped Chunk's picture

The studios will side with who-ever can get their content to the end user that puts the most money in their pockets

Wed, 12/01/2010 - 00:42 | 766974 Oh regional Indian
Oh regional Indian's picture

Thanks Ripped, I felt that sentnce was incomplete even as I was writing it.


Tue, 11/30/2010 - 15:47 | 765248 Critical Path
Critical Path's picture

As of last week I now pay $7.99 for instant unlimited streams (up from $5.99).  I like the service and think its a better deal than some other options that don't include owning a massive library of films.  Not sure where I draw the line on their fees though.  Either way, definitely not good news for cash flow... 

Tue, 11/30/2010 - 15:54 | 765272 Joe Davola
Joe Davola's picture

Unfortunately, many of the movies I'd like to watch aren't available for instant.  There's a whole lotta unwatchable crap that is.

Tue, 11/30/2010 - 18:11 | 765939 aerojet
aerojet's picture's just cable tv all over again?  100000 channels and nothing on?  Fuck that. 

Tue, 11/30/2010 - 15:48 | 765256 SheepDog-One
SheepDog-One's picture

ok, now junk away.

Tue, 11/30/2010 - 15:50 | 765260 Hephasteus
Hephasteus's picture

Does comcast still have customers it hasn't pissed off yet?

I don't believe it.

Tue, 11/30/2010 - 16:03 | 765316 Ripped Chunk
Ripped Chunk's picture

Now they are Xfinity. Such a cool, modern name. All the bad consumer experiences just disappeared! 

Just like when GMAC changed its name to Ally.

See how stupid they think everyone is? Does it piss you off?


Wed, 12/01/2010 - 00:06 | 766915 trav7777
trav7777's picture

lol...I used to work for Comcast and was responsible for implementing some of these hairbrained ideas.  Don't blame me, blame the marketing idiots.

You want some cool info?  Comcast uses a wholesale plan to provide wireless internet where they put you in a bucket.  They use heuristics to predict how much data you will use and will roll you into a lower bandwidth wholesale plan that is cheaper to THEM but will still charge you for whatever your subscription level is.

So, if you want to fuck Comcast, get a particular data plan, underuse, and then rack that mfer up.  They will pay overages to the end providers like Sprint and Clearwire.

Tue, 11/30/2010 - 15:54 | 765271 Lost My Shorts
Lost My Shorts's picture

Funny, didn't stop Nutflex from being up 3.5% again today like every day.  Maybe the FCC is long.

Tue, 11/30/2010 - 19:22 | 766230 shushup
shushup's picture

Right - NFLX was up $7 today and $7 yesterday. Why?

It must be Cramer.

Tue, 11/30/2010 - 15:56 | 765275 G. Marx
G. Marx's picture


Here's what I like to know, in how many jurisdictions was Comcast (or other cable companies) granted a monopoly position as being the only cable provider within a politically geographical area? IMO, any region of the country where Comcast (or other cable companies) have been granted this condition by the local government, then they can go screw themselves. They're nothing more than a utility. Where they have competition they have a right to charge such a fee and I have a right to change my carrier if I so choose.

Tue, 11/30/2010 - 17:01 | 765582 waylon153
waylon153's picture


Tue, 11/30/2010 - 15:57 | 765284 Species8472
Species8472's picture

The end user should pay the toll!

Tue, 11/30/2010 - 18:22 | 765991 ThisIsBob
ThisIsBob's picture

Ultimately end users will.

Tue, 11/30/2010 - 19:23 | 766232 shushup
shushup's picture

Since when has an end user ever won?

Tue, 11/30/2010 - 15:59 | 765293 hdunn2
hdunn2's picture

pretty outrageous price movement all things considered. One, the broader market (specifically tech) is down, two, you have this news that, while not certain, could cause serious headaches in the future, and three, the whole crazy valuation is predicated on international expansion; you would think chaos in Europe would put that in some doubt..

Tue, 11/30/2010 - 16:00 | 765297 Hansel
Hansel's picture

Netflix isn't forcing its data onto Comcast's network.  Comcast customers are requesting Netflix data.  Comcast customers pay Comcast for access to the internet.  Netflix shouldn't have to pay Comcast too.

Tue, 11/30/2010 - 16:02 | 765311 Cone of Uncertainty
Cone of Uncertainty's picture

Comcast will get it's pound of flesh from L3, how much L3 eats is anyone's guess.

Tue, 11/30/2010 - 16:01 | 765306 Cone of Uncertainty
Cone of Uncertainty's picture

Comcast started their own competing site, which sucks.

Sly move on comcast's part to put the screws to L3 right after they swooped in and inked the Netflix deal.

I bet they split the fee.

Either way, how is Netflix going to pass it on to customers right after a pricing move--they can't.

Long term model (margins) in jeopardy...abort, abort, abort.




Tue, 11/30/2010 - 16:04 | 765307 Lucius Corneliu...
Lucius Cornelius Sulla's picture

I see this as an opportunity for Comcast's competitors.  If Comcast cuts out Netflix then I will simply switch to Verizon which happens to be slightly less expensive anyway.

Tue, 11/30/2010 - 16:03 | 765314 Cone of Uncertainty
Cone of Uncertainty's picture

Telcos will go along with Comcast on this.

Tue, 11/30/2010 - 16:06 | 765321 Lucius Corneliu...
Lucius Cornelius Sulla's picture

Will they though?  I think it is a perfect marketing opportunity for the Telcos to differentiate their services.

Tue, 11/30/2010 - 16:22 | 765388 Cone of Uncertainty
Cone of Uncertainty's picture

That just means already low DSL margins go lower.

Of course, it might make sense for FIOS, but again, someone has to eat the fee here.


Tue, 11/30/2010 - 16:49 | 765521 Midas
Midas's picture

They made their name by using the USPS.  Maybe they should go back to that.  Postage may be cheaper than paying the troll toll.

Tue, 11/30/2010 - 16:50 | 765525 Catullus
Catullus's picture

Netflix, just jack your rates on your oldest customers. Bring it $14.99 a month. A donkey ton will attrit, but you'll still keep 70-75%. Most people don't even see this bill. It works in electric power for the Texas REPs. It's still a great deal at $15 a month for a lot of people.

Tue, 11/30/2010 - 16:55 | 765555 curbyourrisk
curbyourrisk's picture

Karl Denninger been beating this to death for some time now..........  Again, he is ahead of the curve.

Tue, 11/30/2010 - 17:10 | 765617 MeTarzanUjane
MeTarzanUjane's picture

KD has a limper wrist than CogDis so not thanks.

Tue, 11/30/2010 - 17:13 | 765630 slaughterer
slaughterer's picture

So, will one of you venture to say, WHEN will NFLX go down?  This is dotcom deja vu every day for me.  

Tue, 11/30/2010 - 19:11 | 766175 Bob
Bob's picture

I think they'll successfully hide behind the cover of the less ambiguously legitimate advocates of net neutrality.  That said, I think they should have to structure in some of the carrier costs--they'll soon be generating half of the entire web's traffic. 

Tue, 11/30/2010 - 17:18 | 765627 jmc8888
jmc8888's picture

Wires are so 1950's. (notice now why they wanted to do phone style rules where it was the PUBLIC's right of way, since they paid for it.....notice WHY private entities built their network, and why it also took so long....that's the market doing something SLOWER and POORER than gov't for the record).

I remember in class about 5 years ago, entrepreneurship class, that these dipshits, who were being lauded by the teacher for some great new technical idea and were current students trying to start a company, and he had them come up and talk to the class.  Of course the guy teaching it was smart for monetarists standards, and brought in an entrepreneur to speak about half the time.  But again, even the so called 'smart teachers', or 'smart economists', yada yada, are nothing more than dipshits.  Hey we all are at some point, but it just amazes me sometimes the frequency it happens with some.

Now this great idea, was, ready for it?  Buying songs at a kiosk.  That's right.  Physical machines, Physical locations, for a 5mb file.  I'm sitting there listen to the teacher and these guys talk about how easy it will be to hook up your ipod or whatever to it and I just couldn't stop from laughing.  Then their idea on pricing vs itunes was lame as well.  Don't remember what bs they had concoted with that one.  But man was I laughing on the inside, and trying my best not to burst out in class.

Why? Well keeping my ear to the technology front door, I read about the (at the time we were @ 2.5g phones) 4g-5g phones and how it was going to be hi-def video, on your phone. 

Well gee, hi-def video on a phone, or 5mb song file where you have to GO somewhere to buy it and all the costs there-in.  What was going to need a much wider birth in terms of bandwith? hmmm Where was the future? 

Not where these dumbasses were going.

So I raised my hand, pulled out my phone and said, in a very not trying to be an asshole and fuck your whole shit do realize this right here, your phone, will be something you can get hi-def video on in about 5 years?  So I suggest if you DO follow through with this kiosk thing, turn it into a turnkey and get out of it asap. (this was the timeframe where ringtones were blowing up, and of course midi files are just a poor quality version of the real thing)

Now why bring that up here?  Well we're talking about traffic over CABLES.

Anyone seen what the new 4g phones can do? Now that they are out for review, or have one. (remarkably I still use that same phone)

Well my cox cable gives me 12mbps (so ~1.2 actual download).  From what I heard these 4g data rates are going to be ~3-10mbps.  So 300kb-1.0mb per second.  Are you getting that right? That means you can get basically cable modem speeds on your phone with 4G.

Now, I was watching G4tv, yes being born in 1978 with an APPLE II in the house, I've always loved computers, and on that channel they showed (a month ago) Blair herter, in a vegas hotel room with some hot bitches, playing online video games on his laptop/ipad (can't remember) and doing it through his 4g phone.  That's right.  You can game on, and probably download through your 4g phone internet connection.  Did I mention they said it was unlimited data?

So at this point you should start to get the picture.  Comcast is FUCKED.  They have no leverage, they just have fiber optic cables.  Ones that ARE NOT a monopoly on coverage. But I guess they do have the quality CNBS to fall back on just in case.

So if comcast really wants to pull 'its on our cables' bullshit, then maybe their customers within another 5 years, might figure out, the only net access you need, is your phone. But then again, comcast is the most fascist of cable companies I have seen, so of course that what THEY'LL do. Unless they value their own ass of course. 

The time will come when satellites can easily provide the bandwidth, that comcast might decide to try to horde.  Hello downloading movies on your phone is already possible.  So comcast hordes their bandwith at their own idiot risk.  But hey, this isn't any stupider than most other monetary induced fools are saying.

In the information age, brand loyalty goes to who isn't screwing their customers.  That IS your edge.  Not much, but go against it, and it IS EVERYTHING.

First the telecoms screwed the landlines

Now the cable companies. 

Tue, 11/30/2010 - 17:41 | 765755 New_Meat
New_Meat's picture


"...notice WHY private entities built their network, and why it also took so long....that's the market doing something SLOWER and POORER than gov't for the record)."

I did some work with AT&T in the early '90s, work brought on by the breakup.  In 1984, T had planned to complete the fiber optic network across the U.S. by 2000.  In fact, it was finished in like '93.  That is private sector "efficiency" for ya.  Plus the other telecoms.

- Ned

Tue, 11/30/2010 - 18:38 | 766042 aerojet
aerojet's picture

I 98% agree with you.  The only parts I would touch up are that all the lines that telcos and cable companies ran they just pocketed the cash and either did not do the runs or left the fiber dark.  I still only have copper to my house, but paid for fiber (same as 99% of the US).  So it wasn't so much that the market was slower than what government might have done, but rather that an act of fraud was committed by people with MBAs (as fucking usual).

I'm totally with you on the wireless, but the wireless providers are fucking their customers pretty fucking hard right now with all those confusing plans and so much bullshit.  I'll be very pleased if Comcast ever gets what is coming to them, but it will probably take a few more years of pain.  Cable is a vapid wasteland, there is nothing worth watching, you are wasting your time on this earth if you are watching cable tv.  Go read a book, or write code, or hit on chicks at the mall. 


One more comment--wireless broadband is fine, but it needs to be more secure.  Hell, the whole internet needs to be more secure, which is why EFF is promoting everyone moving to https for all web traffic.


Wed, 12/01/2010 - 00:20 | 766937 trav7777
trav7777's picture

The wireless infrastructure relatively sucks.

ALL cellcos RELY on people who have data plans NOT using them.  There simply is nowhere NEAR the bandwidth for people to get off of wirelines.

FIOS gives me 15/5 which translates to 18Mbps roughly on a check.  AT&T's 3.5G service gives me 1.5-2  Mbps and I could hit the tower with a pistol.  I could get the clearwire 4G off the same tower, but to be truthful, the pricing is at rough parity with the data portion of FIOS

Tue, 11/30/2010 - 17:14 | 765639 SpykerSpeed
SpykerSpeed's picture

This isn't what it seems.  Read here:

This is just an effort by L3 to use "net neutrality" to save money.

I wouldn't be surprised if the FCC put them up to it, in order to create groundswell support for their undemocratic power-grab of the internet.  You're being played, for the thousandth time.  Never trust the government.

Tue, 11/30/2010 - 17:30 | 765708 Quantum Nucleonics
Quantum Nucleonics's picture

Here here.  The authoritarian forces that is the Obama Administration and its FCC team are looking to seize control of the internet via regulatory fiat.  Far to few people know what these folks are up to.  If America doesn't wake up, we could end up with an American version of China's Golden Shield.  No doubt the FCC's program will have some patriotic name.

Tue, 11/30/2010 - 18:57 | 766102 freemarketfantasy
freemarketfantasy's picture

I know everyone loves to hate on the govvy around here but Net Neutrality isn't some plot for the government to control the internet, it's to keep the internet open and free.  You like to think that the government is going to censor and block and blah blah and that the magical free market and altruistic corporations are going to keep things open and democratic?  You've got to be kidding me.  Corporations are dictatorships by nature mostly run by a privileged, entitled economic class of sociopaths.  Comcast or any other ISP will use their monopolies to censor, block and extort to the same degree that any government would.  Comcast already actively does this, bittorrent traffic blocking, DNS redirection, and extorting money from L3 aren't examples of a "free market" or any kind of altruistic private enterprise objectivist bullshit, it's the big bully on the block kicking you around because he can and no one will stand up to him.

Concentrated power is the problem, whether that comes in the form of government or corporations really makes fundamentally no difference.  You're going to get fucked either way.

Tue, 11/30/2010 - 17:25 | 765681 Quantum Nucleonics
Quantum Nucleonics's picture

And yet, NFLX hits an all time high.  Shorting it has officially replaced nat gas as the ultimate widow maker trade.  It might go to a buck, but it might hit $300 on the way.

Tue, 11/30/2010 - 17:38 | 765731 Rusty Shorts
Rusty Shorts's picture

Oh yeah, and I'm going to start charging an "access fees" to every cell phone carrier, TV broadcaster, Radio broadcaster, Satellite TV company, Ham radio operators, etc., etc. that broadcast electromagnetic signals onto and across my private property.


Rusty FTW !!

Tue, 11/30/2010 - 17:38 | 765739 kentfinance
kentfinance's picture

apple will buy them. there. all better

comcast crap. uverse the future.

Tue, 11/30/2010 - 19:58 | 766332 ArsoN
ArsoN's picture

I wonder if there's some kind of predatory practices suit there.  

Tue, 11/30/2010 - 20:06 | 766353 velobabe
velobabe's picture

i hate NETFLICKs.

i found the library card vital. to avoid the abuse that netflicks would profile you. wouldn't let you see new releases based on prior selections. i can't stand that kind of marketing.

yeah, get a F R E E library card, rent DVD's.

cept the SEC wouldn't like it cause they don't offer any porn, movies. tried to get behind the green door with marilyn chambers. NOPE

Tue, 11/30/2010 - 22:58 | 766710 Buck Johnson
Buck Johnson's picture

Everyone is figuring out that the Internet will be the future thing for entertainment and information.  Cable television is losing subscribers because people want to instantly see the show or demand it and not wait until it's up for online viewing (they even don't like having to program the DVR to record, they just want to see it and if they like it attempt to record it online via a media recorder).  Cable has been charging to much to get channels that many have no time or want to watch.  If they want to keep customers for awhile have a la carte pricing.  Comcast can keep doing what it's doing, but eventually they are going to fall flat on their face, and they are slowly becoming a dinosaur and everybody knows it. 

Like all living things, when in their death throws they fight and that is what Comcast is doing.

Tue, 11/30/2010 - 23:58 | 766889 Id fight Gandhi
Id fight Gandhi's picture

I've been using which is free right now on the iPad. They want to pull it down. But looks like $10 month.

Very useful to get european news stations like BBC, bloomberg and sky news.

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