Netflix warns it will provoke customer protest if ISPs violate net neutrality principles

[Redfairen]

Source: The Verge

Netflix just reported its Q4 2013 earnings, and amidst the good news was a word of caution in the company's letter to investors. Last week, a federal court struck down the FCC's net neutrality rules — and Netflix took notice.  "Unfortunately, Verizon successfully challenged the US net neutrality rules," Netflix writes in its shareholder letter. "In principle, a domestic ISP now can legally impede the video streams that members request from Netflix, degrading the experience we jointly provide."

In a worst-case scenario, Netflix imagines a situation in which it would have to pay fees to ISPs to stop that degradation, but it sounds like the company wouldn't just sit back and let that situation happen. "Were this draconian scenario to unfold with some ISP," Netflix writes, "we would vigorously protest and encourage our members to demand the open Internet they are paying their ISP to deliver."

However, the company doesn't see that as a very likely outcome. The company feels that ISPs are likely to avoid this "consumer-unfriendly path of discrimination" because of "broad public support" for net neutrality — and because the carriers and ISPs "don't want to galvanize government action." Additionally, Netflix seems very aware of its position as a potential friend of the ISPs — it says that high-quality video streams (like ones that Netflix provides) are a driver of the more expensive broadband plans.

That said, Netflix will definitely be keeping an eye on how ISPs respond to the new net neutrality landscape. "In the long-term, we think Netflix and consumers are best served by strong network neutrality across all networks, including wireless," Netflix writes. If "some aggressive ISPs start impeding specific data flows," however, Netflix says more regulation will be needed — and it has a big userbase that would certainly make some noise if their video experience starts getting worse.



Read more: http://mobile.theverge.com/2014/1/22/5335626/netflix-will-provoke-customer-action-if-isps-violate-net-neutrality

[Maedhros]

1. Nationalizing the Internet, or strictly regulating it as a utillity,

is needed to maintain not only intellectual freedom on the Internet but also commercial viability for companies that compete with the ISPs (e.g. Netflix).

Just as we shouldn't allow predatory pricing of electricity, gas and water, we shouldn't allow predatory pricing of information.

[Scuba]

4. Sounds like a good job for the USPS.

Didn't the FCC propose a nation-wide, free broadband service in the last year or so?

Yes, they did: http://www.dailykos.com/story/2013/02/04/1184523/-FCC-Proposes-Groundbreaking-Free-Public-Wi-Fi-Throughout-United-States-Mobile-Companies-Protest


Whatever happened to that?

[JeffHead]

2. The FCC can fix this in about 5 minutes

They can re classify ISP's as common carriers just like phone companies. The Supreme Court more or less said that in the ruling for Verizon.

[lagomorphine]

3. Public support? Where?

If there's such "broad public support" for net neutrality, why is this even an issue? I feel like most internet users are completely unaware of the very concept of net neutrality.

Netflix has worked hard to pull its product from the clutches of copyright holders that were reluctant to allow streaming. It's time they started throwing their weight around and using their platform to make people aware. I know Netflix users want to sit down and watch something without being pitched, but a small sidebar on their page wouldn't be a big distraction to those completely disinterested, and it could draw support from the curious.

[Kablooie]

5. I heard the court struck it down because of the specific laws the FCC used to justify it.

The court decided that net neutrality isn't covered under the laws they presented.

The FCC still has a chance to redefine how they justify net neutrality and take it back to court.

It is also possible, if the people in charge have the will, (Congress? Hoo boy.) to write new laws specifically to keep neutrality in place.

[quakerboy]

6. Netflix should be watching their backs.

The broadband providers like Comcast are more than interested in displacing Netflix and offering their own versions of streaming video.

That said, any compromises of net neutrality will start small and be relatively unobtrusive, to start with. If you started by throttling everyone's Netflix, that would bring a meltdown quickly, and probably force some public policy changes.

But if they do it slow and easy, with a few minor things that they can sorta justify, maybe some of the channels used more commonly for data sharing (piracy), then add some questionable websites to the blocked list, and just build from there, most people will accept the change a little at a time. By the time they get to Netflix, there wont be anyone left to protect them, and anyway, dont worry about it, there's Comcast streampix that's just as good, and surely it would be more convenient to have it all in one bill with your internet anyway!

[jsr]

7. +1.

[cprise]

8. K&R