Net neutrality verdict analysis: Netflix biggest loser | BGR

Posted by $ nickursis 10 years, 3 months ago to Economics
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Back to the topic of net Neutrality, here is another take on how things can go without some form of rules on the net. In our other thread, some were of the opinion NN was government regulation, which, in a sense it may be. But without it, what is described in the article will become common place. And, on the third hand, there is a certain place for "pay to play", if a system has to invest in additional equipment and capability to carry HD programming, then there should be a way to get a return on investment. So, it is a complicated issue with 3 sides to every turn. The bottom line is that a totally unregulated Internet can only result in all kinds of manipulation from within, such that the end user will see fees climb as if on a SaturnV, without some kind of transparency.
SOURCE URL: http://bgr.com/2014/01/15/net-neutrality-verdict-analysis-netflix/


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  • Posted by straightlinelogic 10 years, 3 months ago
    When markets are allowed to operate, generally the largest user of a good or service ends up paying the lowest per unit price. In the 1800's, before government regulation, railroads offered their biggest shippers the best rates, to guarantee themselves regular business (one of the keys to Rockefeller's success). As the largest users of bandwith, Netflix and YouTube are not without bargaining power. YouTube is owned by Google, which is already delving into to building out its own internet infrastructure. Net neutrality is a government pricing regulation, and like all such regulations distorts the workings of the market. Eliminating it will eventually allow the market to sort out who pays what for broadband content. That will be fairer and more efficient than government diktat, leading to lower prices overall. However, the many predictions disguised as certainties that have already been made about what will happen are premature. The one certainty about markets is their dynamic unpredictability.
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  • Posted by LionelHutz 10 years, 3 months ago
    As a Netflix consumer, I would happily pay double their current asking price to get video streams that don't get interrupted in mid-play and resumed at a lower quality bitrate!
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