Wednesday, February 19, 2014

Verizon wants payment for carrying Netflix traffic

According to a Wall Street Journal report Verizon is in a battle with Netflix to handle their video streaming content. Verizon does not want to carry their entire streaming catalog and limit the customer experience, unless additional fees are applied. This concept would be new to ISP based streaming services, but has been ongoing with satellite or cable subscriptions where customers must pay premium rates for channels like HBO or Starz. How they’d manage or inforce this is unclear, it’s also possible they could only allow you so many hours of viewing before you or Netflix would be forced to pay more to deliver content to you. 

Last year Netflix encouraged all ISP’s to sign up for their video-distribution network without paying them fees for carrying its traffic. All of the major ISP have turned down this option stating they need additional compensation, despite the fact that Netflix pays for their bandwidth to the ISP and each and every customer is paying their ISP to have access to services like Netflix already. As Verizon and other ISP’s try to make moves like this the rules of Net Neutrality are slowly coming more into question and all we can do is wait and see if they’re who wins the battle.