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Netflix Says It's Not Worried About the Death of Net Neutrality

With the incoming FCC repeatedly stating they intend to dismantle net neutrality protections, most consumer advocates are understandably worried that AT&T, Verizon, and Comcast will be encouraged to embrace more "creative" anti-competitive efforts than ever before. But in a letter to shareholders (pdf) following a record quarter, Netflix put on a brave face, insisting that the erosion of net neutrality won't have a material impact on the company's earnings.

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"Weakening of US net neutrality laws, should that occur, is unlikely to materially affect our domestic margins or service quality because we are now popular enough with consumers to keep our relationships with ISPs stable," said company CEO Reed Hastings.

Granted, Netflix is now the biggest TV provider on the planet, so it can certainly look out for itself. Smaller companies, without the money to pay AT&T or Verizon to zero rate their services, strike preferable interconnection agreements, or lobby Washington, won't be so lucky under this new, industry-friendly paradigm.

While Netflix appears to largely be looking to soothe the nerves of investors, it did acknowledge that net neutrality (read: a healthy and open internet unhindered by giant gatekeeper ISPs) is still a good thing for consumers and "disruptive services."

"On a public policy basis, however, strong net neutrality is important to support innovation and smaller firms," Netflix added. "No one wants ISPs to decide what new and potentially disruptive services can operate over their networks, or to favor one service over another."

Well, no one except the nation's giant ISPs, the politicians they pay to love them, and their loyal army of lawyers, lobbyists, think tankers, consultants, astroturfers, industry-cozy news voices and other hirelings the telecom sector uses to justify abusing limited broadband competition for anti-competitive advantage.

"We hope the new US administration and Congress will recognize that keeping the network neutral drives job growth and innovation," Netflix said.

While it's likely the incoming FCC will pay plenty of lip service to those concepts, actually protecting them is far from likely. Potential new FCC boss Ajit Pai and Trump advisors like Marsha Blackburn can't even admit broadband competition issues are real. Pai and Trump's telecom advisors have made it clear in their own statements that net neutrality protections -- and a functioning consumer-focused FCC -- are going the way of the dodo.

Most recommended from 46 comments



Anone81d8
@allstate.com

7 recommendations

Anone81d8

Anon

Data Caps

How come we don't tie Net Neutrality with data caps.