Netflix is facing a tough decision after paying out Comcast millions in access fees after the internet provider slowed streaming services for their customers.
Netflix CEO, Reed Hastings has appealed to internet service providers, asking them to keep costs low for consumers and to stop throttling Netflix services.
Hasting announced that Netflix was bullied into paying millions to Comcast after they neglected Netflix data and delivered poor quality content to customers. Netflix’s streaming has also been compromised with Verizon customers as well.
The Internet Service Providers (ISP) state that Netflix customer base has risen, and is using up all of their bandwith. Hence, they are demanding that Netflix pays out more to use their services.
While Hastings has paid off Comcast in the millions, it is expected that other ISP will follow suit, demanding more money or threatening to lower streaming quality for customers.
Well aware of this, Hastings is appealing for new net-neutrality rules which will mean that ISP will not be able to increase prices for different types of web services.
“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 customer experience,” stated Hastings on the company website.
Online gatekeeping has been raising attention this year but in January, the appeals court dismissed equal treatment rules when it comes to data loads, stating that companies should pay for what they use.
Despite this ruling, the Federal Communications Commission is working to create a fair argument for data heavy companies like Skype, Netflix and YouTube, helping to keep them affordable for customers.