The Netflix peering deal with Comcast is a brilliant way to get other ISPs to peer with Netflix. Some conjecture that Netflix will have to pay every ISP, but they’d be wrong – it’s the other way, every other ISP has to peer with Netflix, otherwise, Comcast is the clear premium service.
Think about it, whenever somebody visits family or friends that have Comcast, they will say, “hey Netflix was fast there” it must be my ISP, “I want Comcast, not xxxx”. It immediately dissolves the competition. Who would want to pay the same price for DSL if they have Netflix and it has to buffer?
Of course, many markets do still have an internet monopoly – but 4g is changing that. But wireless 4g carriers have to compete against Cable and DSL, you can bet that they want Netflix to relatively fast on their networks – what better way to sell that it competes.
What do you think? Will ISPs have to compete on who peers with who? Will NetFlix pay others, or will ISPs start paying netflix?