The market sent shares of Netflix
"Usage-based pricing would help drive efficiency in the networks," he said, arguing that it would be fairer and encourage competition.
Consumers certainly wouldn't mind the lower rates that would come from competition, but we've seen what happened when AT&T
Netflix is naturally opposed to anything that ends the data buffet. It's a major component of Internet consumption, especially during primetime usage.
Cox Communications President Pat Esser, at the same conference, pointed out that 40% of his 4 million Internet customers generated Netflix streams during the month of March. Comcast
What will it mean if broadband customers are on the clock? Tiered pricing for Internet usage is the norm in many foreign countries, but a rollout here would naturally make it less attractive to stream chunky video files.
Netflix obviously doesn't want that, and you can be sure that it lets Genachowski know that while cracking down on data hogs by installing tollbooths may seem like a good strategy on paper, it may kill the spirit of streaming media.
Netflix has more riding on this trend than you can probably imagine. Shareholders had better hope that the days of guilt-free streaming consumption aren't numbered.
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Longtime Fool contributor Rick Munarriz has been a Netflix subscriber and shareholder since 2002. He owns no other stocks in this story and is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.