They say that when we landed on the moon, the scientists who got us there used computers with less processing power than what’s in an iPhone. This implies that everyone who has a computer today has an opportunity to do something awesome. It also implies they’re probably wasting that opportunity, consuming massive quantities of porn or binge watching series on Netflix — or a weird combination of the two.
I barely know how to use a computer. I’ve heard that everything is free now if you know how to torrent, but I’m too lazy to figure out how to do that. And I’m on my parents’ Netflix account, so I can afford to be lazy. And like many students, I spend an alarming amount of time watching shows and movies there.
Netflix is powerful, and it’s gaining influence as the most successful Internet streaming and rental service. It’s gotten so huge that now it’s competing directly with traditional TV channels. Its original content is getting accolades and awards; “House of Cards” won three Emmys and a Golden Globe last year. The company already decimated one industry — have you been inside a Blockbuster lately? — and it looks like they’re on their way to dominating another.
At least, that’s what they thought.
Netflix’s advance is definitely going to be slowed down because Verizon just won a pretty big court case. Basically, this case was a fight over “net neutrality.” Net neutrality is the concept that Internet Service Providers, or ISPs, shouldn’t charge more money for certain kinds of internet use. Verizon called out the Federal Communications Commission, saying they didn’t have the right to regulate net neutrality, and the judges agreed with them.
This is bad for Netflix, and it’s bad for people who use Netflix. It’s bad for everyone, actually. Verizon had Netflix in mind when they sued the FCC, because streaming video over the Internet uses a lot of data — data Verizon could be making oodles of money from, if the FCC would allow them.
Now, ISPs are free to charge additional rates for streaming, or to charge Netflix a bunch of money for the data that its customers use. Either way, Netflix users are going to get stuck with higher bills, because both situations require Netflix to tweak its business model.
In fact, they’ve already begun a process of raising prices without making everyone’s heads explode with rage. It’s influenced by Goldilocks and psychological manipulation. They’re going to offer three levels of service: below average, regular and premium. As long as they set the prices for the premium and below average cleverly, they’ll be able to charge whatever they want for the regular service, and people will still buy it. Which is convenient, because that’s what most customers will be getting anyway.
But this shouldn’t make Netflix the bad guy. If Netflix does increase its prices, that’s the ISPs’ fault, not theirs. Winning the lawsuit was a strategic victory and a power grab for Verizon and ISPs everywhere, allowing them to put some pressure on the elusive web company that threatens the future of cable television.
Luckily, it seems there’s hope for the restoration of order. The three justices that handed down the decision stated that they believe in net neutrality. The issue was that the FCC was enforcing it in the wrong way. And popular opinion is in favor net neutrality, too. A recent survey showed that people hate ISPs more than the oil, banking and health industries.
Not having net neutrality places an enormous amount of power in the hands of ISPs over Internet businesses and Internet users. Allowing them to have so much sway over the industry stifles competition and innovation, and it has consequences for everyone with a computer.
[Alec Carver is a UF journalism freshman. His columns appear on Fridays. A version of this column ran on page 6 on 1/31/2014 under the headline "Netflix: Why net neutrality matters"]
