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11/21/2024 08:38:20 pm

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Sony, HBO, Showtime Disregard Net Neutrality Laws for Special Internet Speeds

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(Photo : Reuters) It looks like some internet services are still trying to get an upper-hand after the FCC announced new rules.

The U.S. Federal Communications Commission announced broad reclassification of internet service providers, putting them under Title II 'common carrier' and revoking most of the power from ISPs.

This decision was met with applause from the general internet community and lawsuits from the internet companies, clearly unhappy that potential profits from tiered-lanes and throttling would be illegal.

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It looks like several video streaming providers are trying to find ways to bypass the tiered-lanes rule the FCC set-up by claiming the service is vital and not connected to the internet.

HBO, Sony and Showtime are all working on deals with several internet providers -- including Comcast, Time Warner Cable, Verizon and AT&T -- to make sure the service is prioritized over typical internet traffic.

This will go against the FCC rules, unless the three companies try to sell it as a priority service. HBO is only offering HBO Now on Apple TV, iPhone and iPad and might sell the subscription through internet services to avoid being thrown in with the regular internet services.

Sony and Showtime are trying similar things to make the service seem special, which might gain approval from the FCC. It might also fall flat on its face but the FCC hasn't shown a lot of aptitude in shutting down these types of negotiations in the past.

Netflix, for instance, still pays a premium for direct connection to ISPs. It seems like large video providers either have to invest in a huge amount of server space or pay up for the ability to gain priority service.

Since YouTube is the only major video service capable of affording the servers, all the others need to work through issues with the ISP. For startups, this could be a huge issue if they're unable to gain fast video loading times due to ISP backroom deals.

These talks with the three video providers are in the early stages and the FCC might intervene any time soon to enforce its authority.

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