When all the major ISPs are also selling their own video content, how can Netflix continue to compete?
When all the major ISPs are also selling their own video content, how can Netflix continue to compete?
If ISPs target netflix specifically, there will be PR disaster for them, possible anti-trust investigation from the government and a likely lawsuit.
ISPs are not even a blip on the radar when it comes to selling video content so today Netflix has a clear value proposition: it's a cheap (about 10x cheaper than cable) access to a lot of online video. Netflix's strength is that it's content producer-agnostic. ISPs that are also cable providers can at best offer ability to view via internet their cable programming. Except they're not doing it, it would still be 10x more expensive, they cannot offer anything else that is not part of the cable subscription and probably they can't even offer time-shifting (without re-negotiating contracts with content providers).
Not sure how the third option would hold up for streaming netflix - the first definitely would not.
So really, I don't have any choice about it, so I have no leverage. So capping it won't work against my ISP until they cap it below the other options.
Like Cablevision & Scripps http://www.thewrap.com/tv/article/scripps-cablevision-deal-r...
Or ABC http://www.mediaite.com/online/no-oscars-tonight-for-new-yor...