Friday, June 6, 2014

Netflix and the Battle of the Fast Lane

     Netflix has recently paid a large chunk of change to Comcast in order to get their service up to the speeds they want with out the congestion or bottleneck. Just this past week Netflix has been sending a message to customers using Verizon internet service that blames Verizon for the poor video service they are getting. Verizon is now considering the use of legal action if Netflix continues their bad business practices. There has been much debate over who is to blame for the slow service, and Netflix has taken the stance that big internet service providers not taking the necessary steps on upgrades so the customers get video streaming in a timely manner. Verizon claims there is no basis for their accusations. In fact Verizon recently just signed a commercial deal with Netflix to improve performance. There are many different contributing factors that can lead to poor streaming. As we learned in class, the world is coming closer and closer to cutting the cable bill from their life to move to exclusively streaming from the internet. Everything will eventually go directly to internet whether Comcast and other big television providers believe so or not. I personally plan on not getting television service when I get out of college because I don't watch nearly enough of the programming being offered for me to even bother getting it.
    Netflix better be more willing to help out the internet service providers if they want to improve their customer satisfaction. Instead of shamelessly pointing the finger at someone else, they should be taking responsibility. In my opinion this was not a good public relations ploy. No matter who is technically at fault, calling out another company they have a contract with is not a good decision. I can see this mistake on Netflix's part coming back to haunt them.


3 comments:

  1. I agree that it wasn't the smartest move on Netflix's part. If Netflix's pushing leads to Verison improving their service, that would be nice, but it is more likely this will just end up giving both Netfix and Verison bad reputations.

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  2. Personally, I believe this is an excellent move for Netflix to make, for both their service and for users of Verizon's network. It is well known that Verizon and other ISPs in the US are far behind the standards set elsewhere in the world. With the current state of the internet infrastructure in the United States, I could see it being very beneficial for Netflix to stir up controversy. It is already well known that Verizon doesn't seem too eager to improve their services, and this may be the push needed to get more people and businesses to follow suit.

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  3. This is pretty damn interesting if you ask me. I think Netflix has these companies by the balls because of the power they have currently. Every one of these companies want to be able to utilize Netflix due to its popularity, yet they can't be happy with what they are saying about them. So in order to not lose Netflix as a potential partner, they have to bite the bullet and do what they need to do in order to not lose out on such an important aspect of the entertainment industry.

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