This paper examines the 2014 agreement between Netflix and Comcast, under which the content provider gained direct access to the ISP's broadband network, bypassing traditional content delivery network middlemen. The paper evaluates how the deal affects Comcast subscribers and consumers of other ISPs such as Verizon, focusing on streaming quality improvements and pricing implications. It also addresses the widespread misconception that the arrangement constitutes a net neutrality violation, arguing that because the deal concerns the terms of network interconnection rather than how Comcast manages traffic once it enters its network, net neutrality principles are not implicated.
The paper demonstrates the technique of definitional clarification: before evaluating whether the deal affects net neutrality, it first defines what net neutrality principles actually require. This approach prevents the common analytical error of applying a framework without first establishing what that framework covers, and it allows the author to show — rather than merely assert — that the Netflix–Comcast arrangement falls outside net neutrality's scope.
The paper is organized into four short, clearly labeled sections. The introduction summarizes the deal and frames the central question. Two body sections analyze consumer impact, first for Comcast subscribers and then for subscribers of rival ISPs. The final section pivots to the net neutrality debate, resolving it by distinguishing interconnection agreements from traffic management practices. The structure is logically sequential and well-suited to the essay's focused scope.
The Netflix–Comcast deal has been applauded and criticized in equal measure since it came into being in February 2014. Under the agreement, Comcast — an Internet service provider (ISP) — connects directly to Netflix's servers, essentially eliminating the content delivery networks that typically act as middlemen. The result is that Netflix's traffic experiences minimum disruption on the broadband network (Woollacott, 2014). What exactly does this mean for Comcast's consumers and for consumers of other ISPs?
There has been concern that the quality of Netflix video streaming on Comcast and Verizon networks has been increasingly poor — a trend attributed to overloads at the two providers' interconnection points. The Netflix–Comcast deal directly addresses this bottleneck. Netflix, which currently accounts for approximately 30% of internet traffic, now receives direct access to Comcast's broadband network for a fee. Comcast is required to guarantee a higher level of quality through its service-level agreement (SLA), and consumers can therefore expect better-quality Netflix streams with fewer interruptions, owing to the effect of increased throughput (Reardon, 2014).
The improved transmission quality will not, however, be accompanied by price increases. Although Netflix is paying for the direct broadband access, this is not a new cost — it is essentially what the company would otherwise have paid to transit providers acting as middlemen within the delivery cycle. Consumers are therefore unlikely to see higher subscription prices as a direct result of the deal.
Reardon, M. (2014). Comcast vs. Netflix: Is this really about net neutrality? CNET. Retrieved October 15, 2014, from
Woollacott, E. (2014). What the Comcast–Netflix deal means for consumers. Forbes. Retrieved October 15, 2014, from http://www.forbes.com/sites/emmawoollacott/2014/02/24/what-the-comcast-netflix-deal-means-for-consumers/
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