Netflix now has a larger subscriber base than Comcast. How does Comcast feel about that? Comcast declared open warfare on Internet-based streaming video by Comcast and other ISP/cable operations. They are not waging a fair fight with compelling, competing services. Instead, they are trying to extort money from Internet content providers like Netflix by sticking it to third-party communications partners like Level 3, which is merely a proxy service relaying Netflix streaming services.
Peering arrangements between major carriers have always been subject to payment from one side or the other, depending on the bandwidth balance. If one carrier is shoving a ton of traffic on the other without taking a similar level of bandwidth on their own network, there's usually an agreement in place to compensate the carrier bearing the brunt of the flow. However, these agreements are about bandwidth in bulk, not about specific applications.
Comcast is whining about Netflix traffic specifically, demanding a perpetual fee to "transmit Internet online movies and other content to Comcast's customers who request such content." The customers in question are already paying Comcast bunches of money every month for Internet access. In many places, these consumers have no alternative to Comcast for broadband access.
In effect, Comcast is trying to charge everyone involved in an Internet transaction simply to carry the data that they're already obligated to carry. The company is double-dipping, and if nothing is done to regulate this type of action, this is just the beginning of what will shortly become a sea change in how the Internet operates. If they are allowed to do this, we can expect the costs for everything we do on the Internet to raise drastically.
Comcast already tries to sell us enough overpriced bullshit. If you have ever been unfortunate enough to install their software provided with their internet service then these screenshot will give you an indication of what you're missing.
