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| Netflix prices are set to go up by July. |
Earlier this week, video streaming company Netflix announced
that by the end of June, it planned to up prices by $1 or $2 per month. But
with new rules proposed by the FCC in the pipeline, consumers may be in for
more of a price increase than they bargained for.
FCC rules relating to net neutrality would abide by the idea
that all web traffic should be treated equally—and therefore Internet service
providers could charge companies more to deliver content faster. For Netflix,
which needs fast and reliable Internet service in order to keep consumers
happy, that may mean paying more money. And no doubt, if the company has to pay
more, consumers will have to pay more, too.
“The proposed approach is the fastest lane to punish
consumers and Internet innovators,” Netflix
said, according to The Huffington Post.
In a statement to shareholders, Netflix said that consumers
would be “best served by network neutrality across all networks, including
wireless.”
This isn’t the first time Netflix has been embroiled in a
battle over similar issues. Just last February, the company agreed to pay
Comcast for direct access to its network, after a several month standoff.
Netflix streaming had been sluggish and declining for some time due to
congestion on Comcast’s networks.
Netflix’s customers aren’t happy about the recent
developments, either. Notoriously overly-sensitive when it comes to price
increases, some consumers are already threatening to boycott the company should
they raise prices yet again. Of course, this time around, Netflix has a little
more clout, with original shows such as House of Cards and Orange is the New
Black quickly becoming viewer favorites.
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