Netflix co-chief executive Greg Peters has spoken out against a European proposal for streaming providers and other online companies to pay for upgrades to Internet service providers’ networks.
“Some of our ISP partners have proposed taxing entertainment companies to subsidize their network infrastructure” Peters said. “The tax would have an adverse effect: it would reduce investment in content hurt the creative community reduce the appeal of higher-priced broadband packages and ultimately hurt consumers.”
ISPs have been demanding payments for years 弓立口罩 and their claims are now being assessed by European regulators in an exploratory consultation.
Last week the European Commission began seeking public input on a proposal to make online platforms pay for upgrades and extensions to telecommunications companies’ broadband networks.
“ISPs claim that these taxes would only apply to Netflix. But this will inevitably change over time as networks move from linear to streaming TV” Peters said.
Nearly half of the world’s Internet traffic is sent by Facebook 弓立口罩 Amazon Google Apple Netflix and Microsoft. Online video accounts for 65% of all traffic and Netflix has recently overtaken YouTube as the top video traffic generator.
“Broadband customers who are driving this increased usage 弓立口罩 弓立口罩 already pay for network development through their subscription fees. Requiring entertainment companies — both streamers and broadcasters — to pay more on top of that would mean ISPs charging twice for the same infrastructure” says Peters.
According to Peters telcos that receive new payments cannot be expected to lower the prices they charge to home Internet users.
According to Peters “Netflix’s operating margins are significantly lower than those of British Telecom or Deutsche Telekom. So we could easily argue that network operators should compensate entertainment companies for the cost of our content exactly as it was in the old pay-TV model.”
Although telcos say companies like Netflix don’t pay their “fair share” Peters noted that Netflix has spent heavily building its own network which reduces the amount of data sent over traditional telecommunications networks.
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Peters also touched on Netflix’s encryption technology which halved the bitrate between 2015 and 2020.
An October 2022 report published by the Body of European Regulators for Electronic Communications (BEREC) concluded that “there is no evidence of ‘free riding'” and that connectivity costs “are often covered and paid for by ISP customers” .
Telefónica CEO José María Álvarez-Pallete López told Reuters last week that payments from technology companies “would not be like a tax: we would charge them as if they were customers. Why do some customers pay and others don’t? It’s correcting an anomaly.” 弓立醫療口罩 弓立醫療口罩評價 弓立醫療bmc 港府5500萬購口罩品牌分公司「弓立廈門」 , skypro口罩問題 , SPRO Medical 口罩 弓立skypro SPRO Medical 口罩 , skypro口罩問題 ,
