TVBizwire

After Striking Deal with Netflix, Level 3 Says Comcast Demanded Extra Fee LA Times' Company Town blog

After it struck a deal with Netflix to be its content delivery network for online-video streaming, Level 3 says Comcast demanded a recurring fee "to transmit Internet online movies and other content to Comcast's customers who request such content," according to Level 3's chief legal officer Thomas Stortz, reports the Los Angeles Times' Company Town blog.

With its charge of anti-competitive behavior, Level 3 is raising issues just as Comcast is trying to close its deal with NBC Universal, the story points out. "With this action, Comcast is preventing competing content from ever being delivered to Comcast’s subscribers at all, unless Comcast’s unilaterally determined toll is paid –- even though Comcast’s subscribers requested the content," Stortz said.

But Comcast said that Level 3 "misportrayed" negotiations between the companies, with Comcast senior vice president for external affairs Joe Waz saying that Level 3 is asking Comcast to accept "more than a twofold increase in the amount of traffic Level 3 delivers onto Comcast's network -- for free." Netflix declined to comment on Level 3's accusations against Comcast, the story says.