Reed Hastings is mad at Comcast, but he may have good reason. On his Facebook page yesterday, the Netflix CEO claimed that Comcast is giving its subscribers better access to its own video services than rivals like Netflix. He claims that using services like Netflix, Hulu, and HBO Go will eat into a Comcast Internet subscribers 250GB bandwidth limit; Comcast’s competing Xfinity video service, however, can be used without any penalty.
“Comcast [is] no longer following net neutrality principles,” writes Hastings. “Comcast should apply caps equally, or not at all. I spent the weekend enjoying four good Internet video apps on my Xbox: Netflix, HBO GO, Xfinity, and Hulu. When I watch video on my Xbox from three of these four apps, it counts against my Comcast Internet cap. When I watch through Comcast’s Xfinity app, however, it does not count against my Comcast Internet cap. For example, if I watch last night’s SNL episode on my Xbox through the Hulu app, it eats up about one gigabyte of my cap, but if I watch that same episode through the Xfinity Xbox app, it doesn’t use up my cap at all. The same device, the same IP address, the same Wi-Fi, the same Internet connection, but totally different cap treatment. In what way is this neutral?”
While we normally think of net neutrality as a debate about ISPs like Comcast speeding up or slowing down competing services, Hastings may be right. If this is true, Comcast may be leveraging its dominant position as an Internet Service Provder to subtly help its own services and hurt others, like Netflix.
Hastings has been vocal about his distaste for Comcast in the past and the argument ISPs like it are making that Netflix is hurting their bottom line. In February, he was asked if cable companies are “pressured” by the large amounts of data Netflix requires and he responded somewhat sarcastically.
“That 92 percent Comcast operating margin is really under a lot of pressure…There is no financial pressure on ISPs. They are making a fortune,” said Hastings (via CNET).
I do agree with him. It would be a lot better for all of us if ISPs dropped the bandwidth caps. We have to deal with extensive bandwidth limits on our smartphones already.
(Photo by Kevin Spacey, Time)
normal doesnt make it right.
For the companies like comcast that insititute these caps, why do they do it? Does it really cost them extra if users go over a certain amount of data per month or is it just about money?
All of the numbers are added up on their backend. Comcast is known for canceling service for people that go over their data cap instead of just charging a penalty, so it could be a network constraint on their end possibly.
So more of an infrastructure thing, and cost of maintenance, maybe?
That’s what they say, but a lot of credible experts argue that there is no strain on the Internet’s infrastructure right now. Netflix uses a lot, sure, but it’s built for that. The caps seem more like a way to get future revenue out of consumers. Once everyone eventually starts reaching them, then Comcast can charge for extra service.
This is what I was really wondering. I’d like to see some data as to what people on Comcast (or any ISP) are actually doing data wise and what the service provider’s *physical* network constraints are.
agreed
If the caps were used to get future revenue, why ban current customers that exceed it? Why not let them go over for now, and then just charge them for the overage down the road when the system is in place?
I’m putting my bet on it being about money. Then again, that’s the same reasoning I have for cell phone companies charging so much for data plans and even more if you go over.
But have you heard of a cell phone company banning a customer if they go over? That’s what Comcast did.
I have a hunch the person who got banned was probably not doing something above board to warrant an out and out ban of a product.
Doesn’t make sense for Comcast to ban someone, thus losing money, if it wasn’t something sketchy.
@Joel Geist You have absolutely NO idea what net NEUTRALITY is about, do you??!?
Showing preference for their own video service? uh……….sounds normal to me
It does sound normal, but it also sounds illegal.
Welcome to the dangers of monopolies. When the pipe owners control the content this is inevitable.
And we all know that the operators probably realize they can only do this for so long before they are forced to stop. So they are sure to capitalize on it for a few years while they can. Ticks me off!
Sounds Comcast has been able to convince the “powers that be” that their own App/VOD is part of Comcast’s TV service, and not their internet product. That would allow them to take advantage of a big loophole in the system.
How many ISP’s have bandwidth caps? I think Comcast and Time Warner are the only ones right?
I believe AT&T and Cox do as well, but I haven’t done an extensive look. Verizon doesn’t currently, which is nice, but it retains the right to begin doing it at any time (and says so a few times when you sign up).
This is just one of the problems that comes about when Internet providers are allowed to operate services and content.
Agreed. I would be curious to see what percentage of people out there are actually hitting their data caps.
I’d be curious how much of a blow online video through these services would be to the data cap. 250GB is a lot of space. And is that also just a monthly limit or per year?
Just guess this is another reason to be happy I have DirecTV and don’t have to worry about this nonsense.
I agree. Is this a year or a month? 250GB is a lot. Verizon Wireless MiFi uses 50 GB Limit, and I don’t even use Quarter that every month.
Unless these people are downloading illegally while using Netflix. Especially since Netflix uses a lot of Broadband.
Joe, this is per month which I do personally think is a ton of data. The person Comcast banned went over, but he admitted to using multiple Netflix accounts, streaming simultaneously, and backing up multiple computers to a cloud backup service (which itself could be a ton of data each month).