Arresting Development: Why the Comcast-Netflix Deal Should Worry You

[Commentary] Netflix agreed to pay Comcast an undisclosed amount to ensure that its videos stream smoothly to Comcast customers. But this is more than a deal between two giant companies: It will affect everyone who uses the Internet. And as with so many things involving Comcast, consumers will end up paying for it in the end.

The deal should also be a wake-up call to regulators who are weighing the proposed Comcast-Time Warner Cable merger and grappling with what to do about network neutrality. If the game of chicken that preceded this pact becomes the norm, it will be a disaster for the future of online video. The exact terms of the Comcast-Netflix deal are secret, but this much is clear: Millions of consumers who already paid handsomely for a premium broadband experience received poor service for months on end. Comcast refused to make minimal investments to deliver what its customers already bought -- and simultaneously pushed people to upgrade to more expensive services. This deal spells bad news for future startups and anyone interested in creating or consuming online media (read: pretty much all of us). It will likely chill investment in online video startups as investors look to safer bets that don't involve battling Comcast, a company that’s poised to control over half of the bundled home video and broadband Internet market. Disputes like this hurt the open Internet. They hurt consumers. And they'll become par for the course if Internet service providers are allowed to get even bigger and operate without the Federal Communications Commission stepping in.