Netflix Recants on Obamanet

[Commentary] David Wells, chief financial officer of Netflix, disclosed that Netflix, one of the few companies that advocated the most extreme form of Internet regulation, had lobbyist’s remorse after the Federal Communications Commission voted to replace the open Internet with Obamanet. Netflix PR handlers claimed that Wells was just “trying to convey how our position had evolved.” But the company’s actions support Wells’s words.

Netflix violated a core tenet of network neutrality when it launched its service in Australia as part of a “zero rating” offering by broadband providers, which excludes its video from data caps. Net neutrality advocates want to outlaw such deals. Netflix shrugged off this objection: “We won’t put our service or our members at a disadvantage.” Ironically, Netflix could end up the biggest loser with a regulated Internet. The FCC did not stop at claiming power to regulate broadband providers. It will also review the interconnection agreements and network tools that allow the smooth functioning of the Internet -- including delivery of Netflix videos, which take up one-third of broadband nationwide at peak times.