Netflix and the threat to an open and free Internet

Reed Hastings, CEO of Netflix

Recent reports that Internet providers are slowing down Netflix connection speeds in order to get a cut from their profits are deeply concerning. Time Magazine explains how and why they are doing it. If Internet providers can blackmail Netflix in this way, it is another step away from an open and free Internet. It should also put a negative light on the ComCast and Time Warner Cable merger, as this alleged behavior is another great example as why some providers should not able to get too big. It hurts competition, and leads to the kind of predatory behavior that is resulting in the blackmailing of Netflix. Don't forget, these companies are also running television properties and it is in their interest to keep Netflix down. And by controlling Internet access, they have just the tool.

Losing net neutrality is a threat that concerns us all in ways we often don't even think of. Apart from the well known arguments for net neutrality, one is often overlooked: Imagine that corporations could start paying for preferential access to the Internet. Small business owners would find it much harder to be found on the web, see their websites throttled and eventually go out of business. This would destroy a lot of competition and eventually lead to lower quality service or higher prices.

It would also consolidate ever more power in the hands of already almighty corporations. He can no longer compete with a national company that has preferential treatment. Eventually he is forced to shut down and work for the bigger corporation. With no more competition from small time plumbers the corporation can no start decreasing wages overall for each plumber. They can also start cutting corners or jacking up prices to consumers, because they destroyed the perfect competition market. No it is just a few big boys battling it out amongst each other.

The rise of concentrated corporate power has overall meant one thing for the average American worker: lower wages for the masses while the few shareholders have increasingly seen their earnings increase. It is a return to pre-WWII economics.

The Internet is just one of the many tools we can somehow balance against almighty corporate power. Losing a free Internet would be the same as losing some of our human rights.