Will Verizon's FCC Victory Send Netflix Fees Up?

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Jan. 15 (Bloomberg) -- Verizon’s legal victory over the FCC lets the carrier charge extra fees for speedier delivery of online content, potentially increasing costs for Netflix and other Internet companies. Jon Erlichman reports on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

The stock market reaction and that put shares down.

Do a they have to change their pricing model?

Does that go away?

The quick answer is not just yet.

If you -- everybody loves to talk about all the new shows on netflix.

People are using netflix in a big way.

The numbers from netflix and others project that spending one hour a netflix everyday, even though that eats up a lot of broadband, is nowhere near the amount of total television that people are watching.

I think it is still early days for something like this.

It is something that everybody in the industry is thinking about.

There has been talk about this among policy groups and advocacy groups about what this may do for competition.

Generally speaking, the internet has been flat and open and if we go into a metered model, what does that mean as far as established internet company's and startups?

I think this is -- the lobbying power of all the internet giants in terms of getting their way, that's a whole mother story.

When you think about the companies that have been able to set up shop quickly through something like amazon web services, if all of a sudden, what they have to pay changes, maybe that start up does not exist at all.

That is a bad thing for a big player like amazon because maybe they don't get the business through their amazon web service.

If you think about cable versus the internet, you heard sony at ces talking about plans for an internet tv service.

Intel was thinking about that, maybe amazon goes down that road.

If all your tv cable is coming through the internet and internet companies are offering it for less, cable hates that so they will fight you.

The net neutrality title is boring but behind the scenes, you have huge lobbying efforts and battles between the traditional tv world and the internet world.

We are talking about tv and cable but net neutrality advocates are painting this nightmare scenario whereby internet browsing is one tier and facebook and twitter is another and then you have net lex, youtube and others.

This could have major implications for everyone.

Yes, i think it could.

We talk about the battle with the biggest players.

Sam raise the point about the smaller players.

A company like netflix could rob oblique afford to pay a little bit more whether they are forcing the consumer to pay more or paying whoever is providing the broadband a little bit more.

You could make the argument that the names you mentioned, whether it is facebook or netflix or youtube, they will become more powerful because of their pricing advantage because they got the skill earlier than anyone else.

At the end of the day, it will be positioned that the consumer should not have to necessarily pay more because they are watching a lot.

This comes down to how much you are actually gobbling up.

How much broadband are you using?

Nielsen says we watched eight hours of television per day.

Netflix diehards are watching a lot but they are not watching that amount.

If the technology -- companies like netflix think about going tohd, but they think about compression technology so that you are not eating up the same amount of bandwidth to deliver better content.

They are thinking about that in the same way.

Maybe the technology allows for this to come to you without having to get to this stop in the road where everybody is wondering if pricing changes.

Might this lead to possibly sponsored access, sponsored wireless and data access from larger media companies which could give them an advantage?

I think this opens the door for a lot of people to put their brand or their message on this and positioned themselves in

This text has been automatically generated. It may not be 100% accurate.


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