Everyone keeps waiting for HBO to “pull a Netflix,” where the channel would decouple itself from traditional television service providers and go online only. Given the nonsense that’s going on with net neutrality and regulators in the United States, at this point it’s more likely the reverse will happen. It wouldn’t be surprising to see Netflix give up on online and “pull an HBO,” whereby it becomes just another channel in an overpriced monthly TV package.
On Wednesday, news broke that the Federal Communications Commission is planning to introduce “pay-to-play” rules for internet companies, whereby cable and phone companies will be allowed to charge them extra for better connectivity. This would essentially enshrine the recent controversial Netflix-Comcast deal within actual rules. It was controversial because Comcast degraded Netflix’s quality to the point where the streaming company was forced to pony up. Comcast and other big ISPs have long complained about such services supposedly getting a “free ride” on their networks.
The news set the internet alight, with various voices proclaiming that FCC head Tom Wheeler - a former cable industry lobbyist who was recently appointed to the job by President Barack Obama - had just driven a stake through the heart of net neutrality. It is, of course, that ephemeral principle that all internet traffic should be treated more or less equally so that the guy sitting in his basement with an idea for a startup has the same chance at succeeding as a giant company like Netflix or Google does. Read the rest of this entry »