Net Neutrality and the Netflix Effect

December 10, 2010 -

While Net Neutrality is headed to the next FCC meeting on December 21 for a vote, commentators are talking about the negative and positive effects of new regulations. One such commentator is ZDNet's John Carroll, who sees services like Netflix as a big problem for both pro- and anti-net neutrality camps.

On the one hand, Carroll believes that regulation is important because it keeps service providers from controlling content it does not own and prioritizing content it has a vested interest in. This argument has been made against companies like Comcast, who wants to buy up NBC Universal. Net Neutrality advocates point out that there would be nothing stopping the new mega-company from prioritizing the content it owns - even if it does not actually slow down or block services out of its control.

On the other hand, services like Netflix could prove to be problematic when online video consumption makes up the majority of online traffic. A report from Juniper Networks that appeared in the Bloomberg Newsweek article "Will Video Kill the Internet, Too" paints a scary picture:

The report predicts that carriers such as AT&T and Comcast will see Internet revenues grow by 5 percent a year through 2020. Meanwhile, traffic will surge by 27 percent annually, and carriers will need to increase their investments by 20 percent a year to keep up with demand. By this math, the carrier’s business models break down in 2014, when the total investment needed exceeds revenue growth.

By 2014, video will account for more than 90% of Internet traffic. As Michael Hatfield, founder of Cyan Optics, noted in the article, “this is the most dramatic change in the network that has ever occurred.”

The author concedes that Juniper Networks has an interest in such a dire forecast because it helps sell its networking equipment to gateway owners. Still, Carroll feels that even if consumption eclipses profit and infrastructure investment at a later date, it's still a serious problem. 

In the end, he believes that some kind of regulation balanced with some good old-fashioned capitalism is the real solution. Nevertheless, those who want net neutrality and those that have a stake in less government intervention cannot seem to meet somewhere in the middle. Much like our current political atmosphere, the net neutrality fight is an "all or nothing" battle.

You can read the rest of the article here. The article raises a lot of interesting points no matter what your stance on net neutrality is.


Comments

Re: Net Neutrality and the Netflix Effect

Until broadband meets these specifications:

http://www.newnetworks.com/ShortSCANDALSummary.htm

The ISPs shouldn't be given a single inch.  Simple as that.

- Left4Dead

Why are zombies always eating brains? I want to see zombies that eat toes for a living. Undead-related pun intended.

- Left4Dead Why are zombies always eating brains? I want to see zombies that eat toes for a living. Undead-related pun intended.

Re: Net Neutrality and the Netflix Effect

Concerns over how much traffic video will take up wouldn't be a concern if ISPs were as committed to upgrading speeds as much as the rest of the civilized world.

When I hear from friends overseas that they're gettting 100mb speeds for the equivalent of $20, and I'm only getting 15mb at best for $60, I now that I'm getting screwed and it's only going to get worse.

Re: Net Neutrality and the Netflix Effect

Heh.  The comments in that article get to the point quite quickly.....

Netflix is in no way an argument against Net Neutrality.... if ISP's customers are using up more bandwidth, ISPs can still charge their own customers more.  NN does not stop (or should not stop, since like any movement differnt people are calling for differnt things) ISPs from charging their customers whatever they want (though again, local monopolies make this element a problem)... it would only stop ISPs from charging OTHER ISP's customers.

 
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MaskedPixelantehttp://www.joystiq.com/2014/04/18/playstation-99-cent-sale-discounts-tokyo-jungle-super-stardust/ Weekend long PSN flash sale. So much stuff is 99 cents for the rest of the weekend.04/18/2014 - 5:59pm
Adam802http://www.polygon.com/2014/4/18/5627928/newtown-video-game-addiction-forum04/18/2014 - 4:14pm
Matthew Wilsonit is a video talking about why certain games/products/consoles do well, and others do not. he back it up with solid research.04/18/2014 - 3:56pm
Andrew EisenI'm not keen on blind links. What is it?04/18/2014 - 3:45pm
Matthew Wilsonthis is worth a whatch https://www.youtube.com/watch?v=MyXcr6sDRtw&list=PL35FE5C4B157509C904/18/2014 - 3:43pm
MaskedPixelanteNumber 3: Night Dive was brought to the attention of the public by a massive game recovery, and yet most of their released catalogue consists of games that other people did the hard work of getting re-released.04/17/2014 - 8:46pm
MaskedPixelanteNumber 2: If Humongous Entertainment wanted their stuff on Steam, why didn't they talk to their parent company, which does have a number of games published on Steam?04/17/2014 - 8:45pm
MaskedPixelanteNumber 1: When Night Dive spent the better part of a year teasing the return of true classics, having their big content dump be edutainment is kind of a kick in the stomach.04/17/2014 - 8:44pm
Matthew Wilsonhttp://www.giantbomb.com/articles/jeff-gerstmann-heads-to-new-york-takes-questions/1100-4900/ He talks about the future games press and the games industry. It is worth your time even though it is a bit long, and stay for the QA. There are some good QA04/17/2014 - 5:28pm
IanCErm so they shouldn't sell edutainment at all? Why?04/17/2014 - 4:42pm
MaskedPixelanteNot that linkable, go onto Steam and there's stuff like Pajama Sam on the front-page, courtesy of Night Dive.04/17/2014 - 4:13pm
Andrew EisenOkay, again, please, please, PLEASE get in a habit of linking to whatever you're talking about.04/17/2014 - 4:05pm
MaskedPixelanteAnother round of Night Dive teasing and promising turns out to be stupid edutainment games. Thanks for wasting all our time, guys. See you never.04/17/2014 - 3:44pm
Matthew WilsonAgain the consequences were not only foreseeable, but very likely. anyone who understood supply demand curvs knew that was going to happen. SF has been a econ/trade hub for the last hundred years.04/17/2014 - 2:45pm
Andrew EisenMixedPixelante - Would you like to expand on that?04/17/2014 - 2:43pm
MaskedPixelanteWell, I am officially done with Night Dive Studios. Unless they can bring something worthwhile back, I'm never buying another game from them.04/17/2014 - 2:29pm
PHX Corphttp://www.msnbc.com/ronan-farrow/watch/video-games-continue-to-break-the-mold-229561923638 Ronan Farrow Daily on Video games breaking the mold04/17/2014 - 2:13pm
NeenekoAh yes, because by building something nice they were just asking for people to come push them out. Consequences are protested all the time when other people are implementing them.04/17/2014 - 2:06pm
Matthew Wilsonok than they should not protest when the consequences of that choice occur.04/17/2014 - 1:06pm
NeenekoIf people want tall buildings, plenty of other cities with them. Part of freedom and markets is communities deciding what they do and do not want built in their collective space.04/17/2014 - 12:55pm
 

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