http://news.firedoglake.com/2010/11/30/comcast-shaking-down-netflix-for-streaming-fees-violating-principle-of-net-neutrality/
This article discusses one way Comcast has attempted to shut Netflix out as a competitor for its new Streampix service. Essentially Comcast has proposed a tollbooth on internet data packages similar to that of cell phone service providers. This is a direct response to Netflix increased promotion of its live streaming service signaling that DVD-by-mail is an outdated business model in the home entertainment marketplace. The increased amount of streaming videos on Comcast's network are putting a burden on its network that they feel should be a means of generating revenue.
While I believe this strategy could be very profitable for Comcast, I feel they may run into some government regulation concerning net neutrality. Additionally I would anticipate a large customer fall out if this proposed strategy passes. While this is a good attempt to shut out an industry leader and would give their new Streampix a strong market position I highly doubt this will be a viable strategy for Comcast in the future. However, if Comcast can get other cable and satellite providers to back this move we could see a huge shift in how bundle packages are priced. Another consideration Comcast needs to make is whether this would harm or hut Netflix competitive position. If Comcast installed such a data limit for their internet services they may push customers to purchase Netflix instead of their expensive cable and internet bundles.
