Netflix is being accused by a federal regulator of creating its own Internet fast lanes for delivering its content.
Such a move would create an unfair advantage for Netflix over its competitors, according to FCC Commissioner Ajit Pai.
"I understand that Netflix has taken -- or at least tested -- measures that undermine aspects of open standards for streaming video," said Pai in a statement. "Specifically, I understand that Netflix has at times changed its streaming protocols where open caching is used, which impedes open caching software from correctly identifying caching Netflix traffic. Because Netflix traffic constitutes such a substantial percentage of streaming video traffic, measures like this threaten the viability of open standards."
The Netflix program, Open Connect, stores video content inside the networks of Internet service providers (ISPs) so content doesn't need to go as far to reach users. The result is that Netflix delivery is faster than other similar services, giving Netflix an unfair advantage, say regulators.
Netflix says that to date hundreds of broadband companies have agreed. Some ISPs, however, did not agree with the terms, including Comcast and Verizon. This led to declines in streaming quality until Netflix began signing paid agreements with those ISPs.
Despite the accusations, some reports suggest the accusations are not related to the issue of net neutrality.
"What Netflix is trying to accomplish -- developing a unique streaming technology that enables it to deliver superior performance than its competitors -- doesn't conflict with Net Neutrality. It requires it," said one report. It wouldn't do Netflix any good to invest in research and development of unique algorithms and technologies that improve its performance if a rival streaming service can simply fork over cash to Comcast or Verizon to buy faster Internet delivery.
In effect, what Pai may have unwittingly illustrated is how siding with greedy corporate ISPs will actually stifle innovation -- which is the polar opposite of the claims made by the anti-net neutrality camp.
The accusations come as net neutrality is a growing concern for consumers. Net neutrality essentially means all websites are the same in the eyes of an ISP and ISPs cannot charge more money for particular websites.
Netflix does not charge ISPs a fee, nor does Netflix control access to Internet in the same way that ISPs do. Not only that, but Netflix is not requiring it be the only company that can do this kind of thing, suggesting that it really isn't as unfair as some suggest.
"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 consumer experience. When we do so, we don't pay for priority access against competitors, just for interconnection," said the company in a statement.
