From the “I’m rolling on the floor” file comes this:
The company’s chief financial officer, David Wells, told an investor conference Wednesday that Netflix isn’t “pleased” about the Federal Communications Commission’s recent vote on net neutrality, which slapped strong new rules on Internet providers.
It’s a shocking admission for a company that led the charge on aggressive regulations for Comcast, Verizon and other broadband companies. Last week, the FCC handed Web companies a big victory when it decided to regulate Internet providers under Title II of the Communications Act – just like legacy telephone companies.
Given how vocally Netflix was advocating for Title II, it’s surprising to see Wells suddenly throwing the regulations under the bus, as Variety is reporting.
That’s because what Netflix wanted was a way to continue ramming their costs down other people’s throats — particularly but not exclusively Verizon’s and Comcast’s.
They thought they could get that through their lobbying effort and getting their customers to advocate based on lies, but what they got is going to utterly derail the company down the road — and they’ve just woken up to that.
Here’s the problem, analytically: If, as an ISP, I cannot charge you for the costs you force me to incur when you place outsized loads on my network that I have not engineered for because your “new paradigm” presents loads that are radically beyond the design criteria of my network I have two options: I can either (1) charge every customer more money in order to effectively subsidize your operations or (2) I can move to a usage-sensitive billing model for the customer so the customers who place that demand on me get to pay (a lot) more for the privilege and those who do not pay less.
This post was published at Market-Ticker on 2015-03-07.