Netflix, self-interest and network neutrality
[Commentary] The recent announcement by Netflix that it has been reducing the video quality of its programs on mobile networks for years — something the new network neutrality rules prohibit Internet service providers (ISPs) from doing — has sparked a firestorm by opponents of net neutrality regulations.
It's easy to understand why net neutrality opponents would be angered by Netflix's untimely revelation about its video throttling, and one hopes it will be investigated by Congress and the Federal Trade Commission. But even if, after some scrutiny, Netflix's belated admission is found to be offensive to the spirit, if not the letter of the law, this is not the greatest offense in the whole sorry history of the FCC's net neutrality campaign. After all, we are quite familiar these days with the venal aspects of crony capitalism, whereby companies get policymakers to do their bidding, whatever the costs to others or to the country as a whole.
It might be helpful in that regard to ponder this one stunning datum: The two companies that generate more than half of all downloads in North America are Netflix and Google. And it was those two companies, and their amen chorus in what is laughingly referred to as the tech media, that led the way to what became the net neutrality rule. From its inception until February of last year, the Internet grew and prospered, unfettered by the kinds of regulation that have been imposed on cable and broadcasting. But that is over now, and only history will tell us how much mischief this dreadful regulation will do to the Internet, and to us all.
[Maines is president of the Media Institute]