Comcast P2P, Expensive Music Downloads — Consumers Always Pay
Ars Technica reported Comcast's announcement of its plan to lead an industry partnership in the creation of a "P2P Bill of Rights and Responsibilities" that would apply both to users and to ISPs. I think client p2p sponsored or offered by telcos, cable companies and their ISP operations has been lurking in the shadows for some time. I also think that previously the perceptible delay or the palpable resistance to p2p functionality by the telcos has resulted largely from an inability of the telcos to devise a worthwhile monetization plan. The obvious financial gain resulting from bandwidth usage and the accompanying charges to customers doesn't offset the huge potential load that existing infrastructure and switching would have to carry. But now that all the telcos and cable providers have thrown down the gauntlet and declared, essentially, that net neutrality (another buzzword for sure) is here and in the process of being implemented, it's quite possible that p2p functionality will suddenly become viable (and specifically chargeable as a service distinct from texting, phone calls, voice mail, caller ID, etc.).
The other question that giants like Comcast have recently asked their legal staff is "Are we opening the company to legal action brought by copyright holders if we enable p2p?" The most frequent answer seems to be that as long as Comcast promotes the use of p2p functionality, and more important, as long as copyright holders and managers such as Apple (through its iTunes web site) are willing to pay Comcast a tithe to ensure customers have fast access to the iTunes site (thereby provide sufficient revenue to make infrastructure loading and improvements worthwhile), everybody's ass is covered. No lawyer can then make a case against Comcast for enabling illegal file sharing the day after the same legal staff approves a deal for Apple to pay a fee to Comcast to ensure that Apple customers who are also Comcast customers have fast access to the iTunes store.
It's initially a complex equation. The most worrisome factor might be the degree to which Comcast and its competitors decide to impose potentially invasive usage monitoring to ensure specifically that p2p usage remains legal and within the guidelines for Fair Use set out in section 107 of the Digital Millennium Copyright Act (DMCA). Is the potential sacrifice of privacy worth the dubious privileges conferred by paying for a p2p feature on your cell phone? Possibly worse still, what will bandwidth payments by Apple to Comcast do to the purchase price of music downloads?
In the end, consumers pay, then pay again, and then yet again. What's the real cost of a music download on iTunes in such a situation? After accounting for the small proportionate cost of your ISP contract, cell phone plan, data plan, p2p client fee, bandwidth charges if you go over a monthly limit, the cost of a song download, the cost for the time required to burn a CD at home (for those people who prefer to listen to a CD in the car), the cost of the CD itself, the proportionate cost of hard drive storage space and backup storage space, and the cost for the time needed to make redundant backups of Digital Rights Management (CRM) licenses, purchasing music online may not be the bargain anyone thinks it is.
The other question that giants like Comcast have recently asked their legal staff is "Are we opening the company to legal action brought by copyright holders if we enable p2p?" The most frequent answer seems to be that as long as Comcast promotes the use of p2p functionality, and more important, as long as copyright holders and managers such as Apple (through its iTunes web site) are willing to pay Comcast a tithe to ensure customers have fast access to the iTunes site (thereby provide sufficient revenue to make infrastructure loading and improvements worthwhile), everybody's ass is covered. No lawyer can then make a case against Comcast for enabling illegal file sharing the day after the same legal staff approves a deal for Apple to pay a fee to Comcast to ensure that Apple customers who are also Comcast customers have fast access to the iTunes store.
It's initially a complex equation. The most worrisome factor might be the degree to which Comcast and its competitors decide to impose potentially invasive usage monitoring to ensure specifically that p2p usage remains legal and within the guidelines for Fair Use set out in section 107 of the Digital Millennium Copyright Act (DMCA). Is the potential sacrifice of privacy worth the dubious privileges conferred by paying for a p2p feature on your cell phone? Possibly worse still, what will bandwidth payments by Apple to Comcast do to the purchase price of music downloads?
In the end, consumers pay, then pay again, and then yet again. What's the real cost of a music download on iTunes in such a situation? After accounting for the small proportionate cost of your ISP contract, cell phone plan, data plan, p2p client fee, bandwidth charges if you go over a monthly limit, the cost of a song download, the cost for the time required to burn a CD at home (for those people who prefer to listen to a CD in the car), the cost of the CD itself, the proportionate cost of hard drive storage space and backup storage space, and the cost for the time needed to make redundant backups of Digital Rights Management (CRM) licenses, purchasing music online may not be the bargain anyone thinks it is.
Labels: Comcast, DMCA, DRM, Net Neutrality