Digital Trend’s Editor-in-Chief Jeremy Kaplan explained to Fox Business during an interview today how net neutrality could have an impact on on-demand services and in particular, the world’s leading subscription internet streaming service, Netflix, Inc. (NASDAQ:NFLX).
A dispute between Netflix, Inc. (NASDAQ:NFLX) and Comcast arose last year when users reported having trouble with their streaming services, amounting to slower service and lower quality of video. There were strong rumors that Comcast had deliberately made Netflix, Inc. (NASDAQ:NFLX)’s streaming run slower to favor its own streaming service. Comcast and Netflix reached a deal in which Netflix will pay for faster and more reliable access to Comcast’s subscribers.
“You pay a phone company to make a phone call, point A to point B, they don’t listen in, they don’t stop certain phone calls, but what if all of a sudden you couldn’t call Papa Gino’s because your phone company had a deal with Pizza Hut or something, you’d be up in arms right? You want your pizza, ‘give me my pizza’. That is what net neutrality is supposed to control. We don’t want regulations over which type of pizza you’re ordering online, you want to be able to get whatever pizza you can,” Kaplan explains.
Users wonder what will happen to their streaming services such as Netflix, Inc. (NASDAQ:NFLX) if there’s content that everybody is trying to watch at the same time, clogging the bandwidth. A Fox Business anchor asked what would happen if net neutrality regulations were up and running this Friday with House of Cards’ premiere, and how that would impact on the speed or quality of the streaming.
“Last year 30% of internet traffic was Netflix videos and if something happens like House of Cards, all of a sudden everyone wants access to the same stuff right away, it’s easy to think that maybe it would slow down, that is definitely a risk. I don’t think that the government regulation’s necessarily going to slow things down however,” Kaplan said.
Net neutrality policies seem to want to be fair in giving every user the same speed to access the internet and to encourage providers and services to play a fair game.
“That’s the dream, that’s the ideal and this is a very idealistic policy, let’s hope that there isn’t bureaucratic red tape that shuts everything down. It is idealistic and it says let’s keep things nice and fair like that. In theory this rule would actually keep Netflix up and running,” Kaplan said.
In just a few months, if there are not troubles or lawsuits that get in the way, we’ll discover the impact of the regulations of net neutrality on Netflix, Inc. (NASDAQ:NFLX) services (if any). In the meantime, let’s just enjoy things the way they are now.
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