Netflix has been a company that has experienced customer pushback, and they responded well enough to continue to be a strong power in the video streaming industry. Comcast is a company that has been at the butt of customers’ jokes for a long time, and unfortunately for them, they continue to be there.
Recently, the CEO’s went after each other.
Comcast CEO Brian Roberts recently said Netflix is at fault for wanting to use Comcast’s services to get content to consumers but isn’t looking to pay to do so.
That didn’t sit well with Netflix CEO Reed Hastings, and he hit back, hard. Hastings said Comcast wants to be a monopoly charging for access to its subscribers and “pulling profits out of the system.”
Netflix is the sole source of roughly one-third of all internet traffic, and Comcast wasn’t happy they weren’t paying for it. Recently the two struck a deal allowing Netflix to target Comcast subscribers at a decreased cost. Hastings wasn’t happy with the deal mentioning that Netflix had to take it as there was no real alternative.
Verizon recently had Netflix cut a similar deal with them. Hastings mentioned that deal took place out of Verizon wanting a piece of the pie Comcast was looking for.
Both interviewing at Recode’s Code Conference, Hastings and Roberts voiced their displeasure. Roberts mentioned Netflix was trying to get the best experience for their customers, but that, “it’s just business, he’s trying to get the price for free.”
The argument boils down to who should pay for what. With both companies agreeing that 30 percent of traffic is driven by Netflix, Comcast argues they should pay for using their service. Netflix thinks they should get 30 percent of Comcast revenue.
While it’s hard to say who is right, it seems to reason that the consumer is paying for both internet and Netflix. While Comcast is not everyone’s provide, the cable giant thinking they are owed the entire percentage of Netflix traffic only substantiates claims of why Comcast is looked upon so poorly by the general public.