Shares of the video service provider took a hit this week after FCC Chairman Julius Genachowski suggested that tiered broadband pricing would be a good thing for Internet providers.
"Usage-based pricing would help drive efficiency in the networks," he said.
A shift to usage-based rates by Internet service providers would effectively kill the video streaming revolution. Netflix wouldn't seem like such a big deal if "unlimited" viewing was taking place with a meter running.
Sure, Genachowski was speaking at a cable industry conference. It was just what many of the providers wanted to hear in their fight against cord cutters balking at their perpetual rate increases. However, it would be consumers and most Internet content providers that would be cheated if the tollbooths descended on the scene.
Briefly in the news
And now let's take a quick look at some of the other stories that shaped our week.
Sirius XM Radio
held its annual shareholder meeting. The satellite radio giant is considering a ticker change to SXM, and the M in the proposed ticker symbol doesn't stand for Malone. (Nasdaq: SIRI)
- The market cheered when Take-Two Interactive
issued guidance implying that its most anticipated release -- Grand Theft Auto V -- will be released this fiscal year. Then again, given Take-Two's history of bumping titles that actually have release dates, don't start camping out anytime soon for the game. (Nasdaq: TTWO)
- Morgan Stanley initiated coverage of Zipcar
with an overweight rating. The stock's been stuck in reverse since going public last year, so it was a welcome shift into drive. (Nasdaq: ZIP)
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The Motley Fool owns shares of Zipcar and Netflix. Motley Fool newsletter services have recommended buying shares of Take-Two Interactive Software, Netflix, and Zipcar. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story, except for Netflix and Zipcar. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.