Why does Netflix deny it's buying preferential treatment?

[Commentary] Netflix is paying cable giant Comcast a pile of cash for what the companies say will be "no preferential network treatment." Sure, because corporations routinely give money to one another just for the fun of it.

The reality is that Netflix is handing Comcast an unspecified chunk of change, likely millions of dollars, for what they say is a "more direct connection" to the cable company's broadband network. That's preferential treatment. And that's not necessarily a bad thing. The deal has broad ramifications for consumers. First, it could place the cost of Netflix's bandwidth-hogging service on the shoulders of Netflix subscribers, who will presumably see their rates rise to accommodate the payoff to Comcast. Secondly, it demonstrates the growing muscle of network owners such as Comcast, Time Warner Cable, AT&T and Verizon -- companies that are the gatekeepers of broadband Internet access. These telecom behemoths are beginning to use their market power to extract hefty sums from content providers desiring extra-zippy access to their networks. And never mind that this is completely contrary to how federal regulators say things are supposed to work. "This agreement is in no sense the outcome of a free market," said Craig Aaron, president of the digital rights group Free Press. "This isn't voluntary. This is Comcast having Netflix over a barrel."