While trying to feverishly watch season 2 of House of Cards, I’ve noticed a few spinning rainbows via my AppleTV. What’s up? I tend to blame my Internet connection, but in reality it seems like there’s some nefarious “auto slowdown” occurring. It seems like Netflix is having a conflict with Verizon and other broadband providers over how much content should be carried without additional fees. Netflix complains that they’ve encountered a 14% slowdown in average speeds. The Wall Street Journal is reporting on the conflict between the two titans, but they’re telling us that Google, Microsoft, and Facebook, have already begun paying broadband providers for smoother access to their networks, which leaves Netflix kind of flapping in the wind complaining about tiered access.
The war around the idea of “net neutrality” is heating up as consumers move away from traditional TV and focus more on “binge watching” and a la carte watching via Netflix, Hulu, Google Play, iTunes and other streaming and/or subscription services. Just last month, a court ruled in favor of Verizon’s suit to block the Federal Communications Commission’s net neutrality rules, which has spurred chaos among the providers and content creators as more people consume more high-definition video. To add fire to the furnace, Netflix is more than likely very interested in the upcoming federal review of Comcast’s acquisition of Time Warner Cable, and may push for new requirements on traffic-swapping deals. As we move forward into the unknown waters of “tiered Internet access” it’s going to be more and more about who pays what: the content creators and/or their customers.