+

Cookies on the Business Insider India website

Business Insider India has updated its Privacy and Cookie policy. We use cookies to ensure that we give you the better experience on our website. If you continue without changing your settings, we\'ll assume that you are happy to receive all cookies on the Business Insider India website. However, you can change your cookie setting at any time by clicking on our Cookie Policy at any time. You can also see our Privacy Policy.

Close
HomeQuizzoneWhatsappShare Flash Reads
 

Netflix Issues Warning On The Dangers Of Ending Net Neutrality

Jan 23, 2014, 03:10 IST

Getty Images/ Gareth CattermoleNetflix CEO Reed Hastings.

Netflix issued a statement today lamenting a federal appeals court's decision to effectively end net neutrality rules.

Advertisement

Without net neutrality, it means Internet providers can treat the content they deliver over the Web differently. For example, if an Internet provider wants to create its own streaming video service, it could theoretically slow down or charge you extra to use a rival service like Netflix.

Netflix, of course, isn't a fan of that. It's better for Netflix if the government keeps net neutrality rules and forces all content to be distributed equally over the Internet. However, Netflix's statement is pretty realistic and notes that Internet providers are unlikely to slow down or charge for services like Netflix any time soon.

Still, Netflix warns that there might be a push for more regulation of Internet providers if they start slowing down certain types of data:

In the long-term, we think Netflix and consumers are best served by strong network neutrality across all
networks, including wireless. To the degree that ISPs adhere to a meaningful voluntary code of conduct,
less regulation is warranted. To the degree that some aggressive ISPs start impeding specific data flows,
more regulation would clearly be needed

Advertisement

Here's the full statement from Netflix:

Unfortunately, Verizon successfully challenged the U.S. net neutrality rules. In principle, a domestic ISP
now can legally impede the video streams that members request from Netflix, degrading the experience
we jointly provide. The motivation could be to get Netflix to pay fees to stop this degradation. Were this
draconian scenario to unfold with some ISP, we would vigorously protest and encourage our members
to demand the open Internet they are paying their ISP to deliver.

The most likely case, however, is that ISPs will avoid this consumer-unfriendly path of discrimination.
ISPs are generally aware of the broad public support for net neutrality and don't want to galvanize
government action.

Moreover, ISPs have very profitable broadband businesses they want to expand. Consumers purchase
higher bandwidth packages mostly for one reason: high-quality streaming video. ISPs appear to
recognize this and many of them are working closely with us and other streaming video services to
enable the ISPs subscribers to more consistently get the high-quality streaming video consumers desire.

In the long-term, we think Netflix and consumers are best served by strong network neutrality across all
networks, including wireless. To the degree that ISPs adhere to a meaningful voluntary code of conduct,
less regulation is warranted. To the degree that some aggressive ISPs start impeding specific data flows,
more regulation would clearly be needed.

You are subscribed to notifications!
Looks like you've blocked notifications!
Next Article