With its Q3 earnings report, Neflix brought a lot of good news to its investors. But, tucked in among the usual updates on marketing activities, product launches, and subscriber growth, its letter to investors also offered a warning: Net neutrality violations are a serious concern in the wake of the recent federal circuit court decision.
The cause for concern is legitimate—ISPs now have the right to throttle bandwidth used by certain services, and video streaming sites are the most likely target thanks to their massive data demands. But even as it warns investors of trouble ahead, the letter offers the soothing suggestion that ISPs probably aren't foolish enough to actually use their newfound powers.
The letter states that, "ISPs are generally aware of the broad public support for net neutrality and don’t want to galvanize government action." But it also suggests that if some ISP were to overplay its hand and actually place a dam in the stream of video data, Netflix would attack the problem by mobilizing its user base:
"Were this draconian scenario to unfold with some ISP, we would vigorously protest and encourage our members to demand the open Internet they are paying their ISP to deliver."
2014 looks to be a big year for the company, as it builds on steady subscriber gains and grows its content-creation business, including some of the first 4K content that will make its way to UHD TVs. However, that bright future remains dependent on unimpeded consumer access to its services—something the company appears ready to protect.
Via: The Verge