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Netflix says there's a big loophole in proposed net neutrality rules

February 8, 2010 — 9:54am ET | By Jim O'Neill
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Netflix is asking the FCC to look a little closer at its proposed net neutrality rules, warning that there's a major loophole that would allow Comcast-especially if it's NBCU merger is approved-and other major cable and satellite companies a major advantage in giving their own content a delivery edge. And, Netflix says, that would create a major hurdle for its business and keep its nascent, but growing, streaming business from gaining more than a foothold in the online video delivery campaign.

The company said the FCC's language in the "managed services" portion of its proposed rules needs to be readdressed and strengthened.

"If left unchecked, the ‘managed services' category could engulf the Commission's open Internet policies altogether. As such, the Commission must carefully circumscribe the network operators' ability to exempt certain services from the openness rules by classifying them as managed services," Netflix wrote in its filing to the FCC.

Cable companies are seeing services like Netflix, which often are delivered "over-the-top" on devices like Sony's PS3 and other gaming consoles, on Blu-ray players and, increasingly, on Internet-connected televisions, as a major threat. Increasingly, consumers are opting to add OTT devices rather than invest in more services from cable and satellite providers. Netflix and other OTT services also have prompted some consumers to drop their cable and DBS services entirely. A recent study said some 8 percent of high-speed Internet users planed to cut the cord to pay television, although critics of the data have said it's more likely that consumers will add OTT delivery in addition to their current cable or DBS service rather than drop pay TV entirely.

For more:
- see this Washington Post blog


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Comments (3) | Post a comment
More stories about Net Neutrality   netflix streaming   over the top video  

Comments

Posted by Anonymous | February 8, 2010 - 12:14pm

I sure hope we get good Net Neuttrality. Cable TV has become a pig. Consumers would like to only pay for the channels they want but instead they have to pay upwards to more than $100 a month to get a few good stations. The rest of the stations are junk with too much advertising, so much that it is unbearable to watch. No wonder people are finding new ways to be entertained--renting DVDs, downloading videos for devices, watching streaming video from set top boxes like Netflix.

Posted by Jance | February 8, 2010 - 12:19pm

If you want small businesses to thrive in the US support Network Neutrality.

Posted by Tony D | March 25, 2010 - 9:47pm

I have cut the cord with my cable company they are so smug you get used to watching certain channels then all the sudden they disapear or the quality starts to slip..and its not so much what they have to offer as it is what they dont have..and my god to sit thru a 30 min sitcom and endure watermarks on the bottom of the screen with pop ups advertising next shows or products and then you add mega minuites of endless redundant advertising its a enough to make you throw your tv out the door regular network stations have killed the viewing experience. I refuse to watch regular tv. I refuse to be bombarded with sponser dribble over and over they actually think we watch this stuff hard to believe they can be that stupid right now I have netflix $9 month most awesome thing to ever happen. I can see most all of my favorite shows and movies with no overbearing sponsers and I dont need cable and its jacked up prices they should pay me to watch that crap and I dont have to worry about customer service its 24/7 with netflix try to get help with your cable after 5:00 on friday haah if it goes out then your screwed for the weekend plus when you do get ahold of someone after endless tries on an automated answering machine you get lip service they dont give a poo they know your stuck with them so why should they worry if your haPPY well they better wake up and smell the coffee the day of reckoning is here.

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