Suppose that we eliminate net neutrality. Further suppose that, in a few years, I start a video streaming service called "Notflix".
Because ISPs are no longer required to be dumb pipes, they've started charging their customers a premium for access to video content. This is bad for Netflix, of course, because it cuts into their subscriber base.
They crunch some numbers and come up with an amount they're willing to pay the ISPs to exclude their subscribers from this segmented pricing scheme. The ISPs accept this mutually beneficial deal, and everyone's happy, right?
What about Notflix, though? We don't have the capital that Netflix has to pay into this protection racket, so our subscribers must choose between paying the ISP video premium + our subscription fee, or Netflix's subscription fee.
That's an uphill battle and straightforwardly anti-competitive, but is also the precisely the promise of a world without net neutrality.
I also disagree with your assessment that anybody is subsidizing internet giants. All those players pay for the bandwidth they consume to dump their data into the network. The end-user pays for the other end of the connection. Everything is being paid for, proportionally to the usage.
The last-mile ISPs simply want to double-dip. Comcast thinks Netflix should pay both Level 3 AND Comcast for using the pipes, which fundamentally undermines the architecture of the internet.
>I also disagree with your assessment that anybody is subsidizing internet giants. All those players pay for the bandwidth they consume to dump their data into the network. The end-user pays for the other end of the connection. Everything is being paid for, proportionally to the usage.
I know very little about the situation, hence the naive question, that statement was based off all the websites like reddit putting up fake pay walls to show what things would be like without net neutrality.
Because ISPs are no longer required to be dumb pipes, they've started charging their customers a premium for access to video content. This is bad for Netflix, of course, because it cuts into their subscriber base.
They crunch some numbers and come up with an amount they're willing to pay the ISPs to exclude their subscribers from this segmented pricing scheme. The ISPs accept this mutually beneficial deal, and everyone's happy, right?
What about Notflix, though? We don't have the capital that Netflix has to pay into this protection racket, so our subscribers must choose between paying the ISP video premium + our subscription fee, or Netflix's subscription fee.
That's an uphill battle and straightforwardly anti-competitive, but is also the precisely the promise of a world without net neutrality.
I also disagree with your assessment that anybody is subsidizing internet giants. All those players pay for the bandwidth they consume to dump their data into the network. The end-user pays for the other end of the connection. Everything is being paid for, proportionally to the usage.
The last-mile ISPs simply want to double-dip. Comcast thinks Netflix should pay both Level 3 AND Comcast for using the pipes, which fundamentally undermines the architecture of the internet.