Net Neutrality Hasn’t Nailed Netflix Yet
Netflix (NASDAQ:NFLX) at the moment remains unaffected by the end of net neutrality, according to a note from JPMorgan analyst Doug Anmuth seen by Re/Code. “Netflix does not seem overly concerned regarding Net Neutrality, and continues to believe that violations would be escalated quickly. Netflix also indicated that it has no evidence or belief that its service is being throttled,” Anmuth says in the note.
Last month, Verizon Communications (NYSE:VZ) won a suit against the Federal Communications Commission regarding its ability to charge certain Internet content providers for the amount of bandwidth their services use. An appeals court in Washington, D.C., ruled that the FCC was overstepping its bounds by trying to bar Internet providers from blocking certain kinds of online content or charging the companies that take up the most bandwidth a higher fee. The current rules require Internet providers to give the same high-speed service to all types of Internet traffic equally, but now a court has sent the rules back to the FCC to be rewritten.
FCC Chair Tom Wheeler has said that the regulator remains dedicated to the principles of net neutrality and that the agency will appeal the ruling. The rules were put in place by the FCC to make sure the Internet would remain a fair place for everyone, with no companies receiving preferential treatment or being unfairly blocked by Internet providers.
Netflix has argued for net neutrality, saying that wireless broadband customers pay for access to services like Netflix and that if providers like Verizon begin slowing Netflix’s service, then a battle will escalate quickly and likely result in customers switching to a different Internet provider.