Netflix (NFLX) CEO Calls For Strong Net Neutrality

NEW YORK (TheStreet) -- Netflix (NFLX) CEO Reed Hastings spoke out in support of strong net neutrality rules, asking Internet providers to deliver consistent high-quality service.

Shares of Netflix were falling 3.9% to $407.73 Friday.

In a post on the Netflix blog Hastings said that strong net neutrality rules are needed so ISPs can't charge companies like Netflix, YouTube, and Skype extra fees to ensure their customers receive high-quality service. Hastings explains that without such rules Netflix will sometimes have to pay interconnectivity fees to ISPs to make sure its customers don't experience long wait times, high buffering rates, and poor video quality.

Netflix recently reached an agreement with Comcast (CMCSA) to ensure Netflix users who use the ISP have a good experience. Hasting's post directly contradicts such agreements, as he contends that "When an ISP sells a consumer a 10 or 50 megabits-per-second Internet package, the consumer should get that rate, no matter where the data is coming from."

Hastings points to Cablevision (CVC) as an example of an ISP that practices strong net neutrality, saying that Netflix's quality is "outstanding" for its subscribers.

While the Netflix CEO is pushing for stronger net neutrality rules he acknowledges that for now the company may make more deals similar to the direct-access Comcast deal. Hastings closes the blog post saying "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."

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