Netflix, Inc. (NASDAQ:NFLX), one of the leading video streaming services in the U.S., is awaiting new net neutrality rules from the Federal Communication Commission next month. The matter came under limelight when leading Internet Service Providers proposed Bandwidth limitations for video streaming services and additional fees for high bandwidth.
It is important to consider that this is the first time when the FCC has interfered in these kinds of agreements and it would expand the control of FCC over Internet. Tom Wheeler, chairman of FCC, has prepared new rules and these will be up for voting next month. He further added that the companies would have to seek FCC’s review of the agreements and he further added that his rules are aligned with president Obama’s call to prevent ISPs from slowing web traffic.
The procedure to file complaint against ISPs lead by Comcast Corporation (NASDAQ:CMCSA), Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T) is a great relief for companies offering video streaming services including Netflix, Inc. (NASDAQ:NFLX), Google Inc (NASDAQ:GOOGL), and Amazon.com, Inc. (NASDAQ:AMZN).
It would allow FCC to order ISPs to improve internet speed and prevent them from charging unfair fees from video streaming services.
In addition to it, the video streaming service performed well at SAG 2015 award show bagging up to three awards under different categories. Its shows including ‘Orange is the New Black’ and ‘House of Cards’ won awards under different categories.
Earlier, Netflix, Inc. (NASDAQ:NFLX) announced its fourth quarter 2014 financial results last week with net revenues of $1.30 billion and the video streaming service added nearly 4.33 million subscribers in the quarter. Its net income was $83 million in the quarter with diluted earnings per share of $1.35. The video streaming service operates profitably in 40 out of its present 50 markets globally.
This article has been written by Prakash Pandey.