(Post by Edwardo Sackey, Andrew Lei, Liza Gutina,Emmanuel Badoo)
There is a battle brewing between Comcast Corp and Level 3 Communications. This spat arose because of Comcast's demands that Level 3 Communications pay exorbitant fees to deliver Netflix content to Comcast subscribers. Below is a snippet from a Bloomberg article on Dec 3rd
“….Level 3 Communications Inc., accusing Comcast Corp. of setting up a “toll booth” for Web traffic, said the cable carrier is trying to protect its TV business by charging Level 3 for delivering video to its customers.
“Online distribution of movies, TV shows and other content threatens Comcast’s traditional ‘closed’ video distribution model,” the company said. Broomfield, Colorado-based Level 3, which provides broadband services to customers including Netflix Inc., made the statement in a 19-point public letter today….”
Do you feel Comcast by charging Level 3 Communication a fee will protect its TV business?