Posted 03/21/2014 at 11:06 AM
Posted 3 years ago
Netflix CEO Reed Hastings wrote a blog post yesterday on the topics of net neutrality, the competitive environment of the Internet, and his thoughts concerning the ever-growing, poor experience that Netflix subscribers have been experiencing of late.
In his blog post, Hastings points out that “Netflix performance has been constrained, subjecting consumers who pay a lot of money for high-speed Internet to high buffering rates, long wait times and poor video quality.”
Will the average Netflix customer understand, or even sympathize, with the somewhat complex issues concerning Netflix?
Most likely, the average Netflix customer will put up with poor quality up to a point, and then eventually, drop the service.
The average customer will not try to understand the battles between these Internet giants — they’ll just subscribe to another service that can provide high-quality, streaming movies, without problems. The winner in all this will be the company that is willing to pay what is needed to deliver what the customers want.
Hastings adds “A few weeks ago, we agreed to pay Comcast and our members are now getting a good experience again.”
Hastings goes on to say “Some big ISPs are extracting a toll because they can — they effectively control access to millions of consumers and are willing to sacrifice the interests of their own customers to press Netflix and others to pay. Though they have the scale and power to do this, they should realize it is in their long term interest to back strong net neutrality. While in the short term Netflix will in cases reluctantly pay large ISPs to ensure a high quality member experience, we will continue to fight for the Internet the world needs and deserves.”
Netflix ultimately needs to do whatever is required to bring high-quality service to their customers, otherwise, they’ll find themselves a footnote of Internet history in short order.