Net Neutrality debate gets Flixed

Netflix has gone to bat fighting for stronger net neutrality rules and in turn shedding light on the reasons behind the deal with Comcast.

 Netflix CEO Reed Hastings stated in a blog post, “ to ensure the Internet remains humanity's most important platform for progress, net neutrality must be defended and strengthened… (ISPs) must provide sufficient access to their network without charge."

He added that while Netflix, in the short term “will in cases reluctantly pay large ISPs to ensure a high quality member experience,” Hasting vowed that Netflix would continue to fight for the Internet the world “needs and deserves.” Hastings called for new rules that specifically prevent ISPs from charging content providers or their distributors a toll to connect more directly to their networks.

Netflix currently represents nearly one-third of North American data traffic.

The Federal Communications Commission established net neutrality rules in 2010 but after a raft of legal stoushes with dominant ISPs was forced to abandon the rules after the U.S. Court of Appeals for the District of Columbia shut them down in January.

Comcast issued its own follow up statement claiming that it "supported the FCC's Open Internet rules because they struck the appropriate balance between consumer protection and reasonable network management rights for ISPs."

Hastings suggested in his blog post that large ISPs were to blame for failing to invest in equipment and capacity that would ensure smoother streaming of its movies and TV shows. "On other big ISPs, due to a lack of sufficient interconnectivity, Netflix performance has been constrained," he wrote.

AT&T stepped into the debate branding Netflix’s stance as “arrogant”. AT&T Senior Executive Vice President of Legislative Affairs, James Cicconi, said “as we all know, there is no free lunch, and there’s also no cost-free delivery of streaming movies. Someone has to pay that cost. Mr Hastings’ arrogant proposition is that everyone else should pay but Netflix. That may be a nice deal if he can get it. ”

The FCC is currently seeking comment on a new path forward for net neutrality.

CombiTel Managing Director, Eugene Razbash commented that Netflix's vested interests in net neutrality augment their hard move into new territories that impact local operators. “Netflix’s entry into those markets creates a silver lining as  local operators will need to become more creative as ‘digital retailers’. Much like what we have seen happen to bricks and mortar retailers when multinational department stores enter the market, the same will happen the streaming space.”

• Prev
• Next