Deal with the devil: why Netflix broke its own rules on net neutrality

[Commentary] Why did Netflix agree to pay Comcast and violate Netflix’s own stated principles? According to CEO Reed Hastings, "Netflix believes strong net neutrality is critical, but in the near term we will in cases pay the toll to the powerful ISPs to protect our consumer experience."

That is certainly part of the truth. Given Comcast’s massive size, Netflix could no longer afford to have so many customers suffering poor service. But informed speculation would suggest there is also a more opportunistic strategy at play here. Netflix had been negotiating with the major American ISPs for two years over these fees.

What if the deal happened now because Comcast, under intense regulatory scrutiny over its proposed merger with Time Warner, finally came to the table with terms Netflix could agree to? Is it possible Hastings saw the chance to strike a deal with the devil, abandoning his own stated principles to capture a bargain at a moment of maximum leverage?