What is Net Neutrality, Anyway?

“Net neutrality” is a buzzword these days.  To some people, though, it’s nothing more than that.  In our connected world, it’s important to know exactly what net neutrality is.  In my opinion, it’s also important to support it.

So what is net neutrality?  Simply put, net neutrality is the concept that all (legal) data on the internet is treated the same.  This was actually one of the core ideas of the internet when it was first started.  To the internet, data is data, all it does is pass it along.  It makes no different to the internet whether I’m watching YouTube or reading Six Colors, all it does it take data from those sites’ respective web servers and deliver it to my browser.  So basically, net neutrality has existed since the start of the internet.  Why would anyone want to change it?  The answer, as always, is money.

Let’s talk about some examples.  A few years back, Comcast customers were complaining that Netflix didn’t work well for them.  In response to this, Netflix paid Comcast a ton of money for Comcast to store Netflix content on Comcast’s servers.  This meant that Comcast customers ended up with a better Netflix experience.  So what’s the problem?  Netflix wasn’t happy with what they were getting from Comcast, so they paid more money and got better service.  Isn’t that just capitalism?  It is, but the problem is that it gives Comcast opportunities to extort money.  Suppose Comcast purposefully slowed down Amazon Instant Video on their network.  Now Comcast can go to Amazon and say, “Hey… you know… if you paid us some more money… maybe your content wouldn’t look so bad.”  This is technically capitalism, but then, so are monopolies.  Monopolies are illegal because someone who owns a monopoly is able to extort a lot of money from a lot of people.  In this scenario, Comcast can do the same.  People against further net neutrality legislation (like Comcast) say that current laws make it illegal to slow down someone on purpose; you can only pay more to get faster service.  This is true; Comcast can’t slow someone down if they don’t pay up.  All Comcast has to do, though, is not raise their baseline speed, and 10 years from now, it’ll be a joke.  This is why we need rules that outlaw any special treatment at all.

The other problem we have without net neutrality is a stifling of innovation.  For this example, we turn to T-Mobile.  T-Mobile recently launched a new feature where streaming music does not count against customers’ data usage.  (Full disclosure: I love this feature and use it all the time.  I’m a hypocrite, I know.)  T-Mobile included pretty much all major streaming services in this.  However, what if some new service pops up trying to make it big?  If they’re not included in T-Mobile’s deal, I probably won’t switch to them over Spotify.  This could be detrimental to anyone trying to launch a new streaming service.

So what needs to be done?  My understanding is that to really lock down net neutrality for good, Congress will have to reclassify internet service as a utility.  At that point, it will be subject the same regulation that electricity and water are.  When I first heard this idea, I laughed.  Internet service a utility?  A basic human right?  What a first world problem!  But then I started thinking: suppose you’re running a small business.  There’s really no way for you to run your business successfully without the internet, in the same way that there’s no way for you to run it without electricity.  I’m not convinced internet access is a basic human right, but I think utility fits it well for now.

So what’s being done about this?  A year ago, I would have said net neutrality was dead, since the legislation didn’t seem to be going anywhere (not that much legislation at all goes anywhere these days).  However, the FCC is now looking to potentially instate some new regulations that would reclassify the internet as a utility.  There’s also another proposition out there that wants to create some new regulations without actually reclassifying it.  This could potentially be a pivotal time for the history of the internet, and the next few weeks should be very interesting.  ••

Update 2/27/15: Yesterday, the FCC officially decided (in a 3-2 vote) to regulate the internet as a utility.  If you’re interesting in reading more check out this article from CNET.

Advertisement

Why Amazon Prime Gives You More Than Netflix

Almost everyone I know has a Netflix account.  Except for my family.  Instead, we have Amazon Prime.  One of the biggest features of Amazon Prime is Instant Video, a Netflix-like streaming video service.  I’m not sure if Instant Video’s library is quite as good as Netflix, so if you’re a TV and movies buff, Netflix may be the way to go.  However, as a fairly casual TV viewer, Instant Video is pretty good.  The thing is, Netflix only offers streaming video.  “Well of course,” you might be saying.  However, since Amazon has such a deep media ecosystem, Prime also gives you access to lots of other things.  Besides Instant Video, there are three main draws to Amazon Prime.

1.  Free Two-Day Shipping
This feature will save you lots of money.  Amazon already offers free shipping deals to their customers.  However, you have to spend $35 or more (yes, it used to be $25), and it’s only standard shipping.  With Amazon Prime, you get free two-day shipping with no minimum order.  This is really great, because when I need to buy something online, Amazon is the first place I look.  I’ve never been one to actually pay for expedited shipping, but it sure is nice to have.  One caveat: Prime shipping only applies to items sold by or fulfilled by Amazon, so it doesn’t apply to third-party Amazon sellers who don’t have their orders fulfilled by Amazon.  To be fair, this restriction also applies to the $35 free shipping for non-Prime customers.

2.  Prime Music
Prime Music is a Spotify-like streaming music service that is included with Amazon Prime at no extra cost.  As I said before, Amazon is able to do this because it has such a deep media ecosystem.  Netflix would have a hard time getting into the streaming music business, since they would have to start making deals with record labels, and then put all that music on their servers.  Amazon, in contrast, already sells digital music on their Amazon MP3 store, so they have less hoops to jump through.

3.  Kindle Owners’ Lending Library
The Kindle Owners’ Lending Library allows you to borrow and read thousands of books for free as a Prime Member.  The catch?  You have to own an actual Kindle (Kindle apps don’t count).  This is a shame, because I would love to make use of this service on my iPad.  If you’re not a Kindle owner but you really want access to all those books, you can make use of Amazon’s new service, Kindle Unlimited.  Amazon just recently launched Kindle Unlimited, a service that allows you to borrow and read thousands of books on any device.  Kindle Unlimited costs $9.99 per month, a cost separate from your Prime subscription (you aren’t required to have a Prime subscription, but even if you do, you still have to pay the extra $10 a month).

All that discussion leaves one question left to be answered.  How much does all this cost?  Amazon prime is $99 per year (it used to be $79).  This works out to $8.25 per month.  Netflix starts at $7.99 per month, so the pricing is almost identical.  However, when you factor in the extra features Amazon gives you (including free shipping on other things you buy), it really seems to give Amazon the edge.  Now if only there was an Instant Video channel on the Apple TV, so we didn’t have to AirPlay from the iPad every time we want to watch something.  ••

Update 11/6/14: Amazon recently announced that Prime members also get unlimited photo storage in Amazon Cloud Drive.  This is yet another reason why Amazon Prime gives you more than Netflix.

My Wishlist for the Apple TV

My family owns two Apple TVs.  The Apple TV is a $99 set top streaming box that connects to your TV.  It can display content from iTunes, Netflix, Hulu, HBO, and so forth.  There’s also a great feature called AirPlay, which allows you to stream from your iPhone, iPad, or Mac directly to the TV (this is basically the only feature my family uses).  All things considered, it’s a great piece of hardware.  But it could be so much more.  Steve Jobs once famously said that the Apple TV was just a hobby for Apple (since the market wasn’t quite ready for it).  Times have changed, however, and Tim Cook has said that the Apple TV isn’t just a hobby anymore.  There are lots of people hoping for big improvements to the Apple TV this fall, so here’s my list of features I’m hoping for.

1.  Third-Party Channels
Right now the Apple TV has different “channels,” which are very similar to apps.  For example, there’s a Music channel, a Movies channel, a Netflix channel, and the list goes on.  However, the only way for a company (such as Netflix) to get an channel is to work directly with Apple.  There is no SDK (software development kit) for developers to make channels on their own, and no store to download channels from.  In order for the Apple TV to really hit it big, this SDK and store need to happen.  For example, there is no Amazon Prime Instant Video channel on the Apple TV.  Therefore, we have to AirPlay from the Instant Video iPad app in order to use the service.  This works well enough, but it’s hardly ideal.  Opening up an SDK would also open up a whole new world of innovation.  Allowing developers to think outside the set top box could result in some really cool things, such as Apple TV games that use your iPhone as the controller (to be fair, some iPhone apps can already do this, but I’m sure it would work better if the Apple TV was more heavily involved).  Unfortunately, I don’t think this feature is going to happen this year.  If Apple intended to release an Apple TV SDK, they would almost certainly have to do so before the hardware was launched, so that there would be good channels available on the store the day it hit the market.  The perfect time to do this would have been at WWDC.  Since we didn’t see an SDK at WWDC, I don’t think we will actually see third-party channels this fall.

2.  A Real Cable Deal
My family has Dish Network.  Generally speaking, we’re happy with it, but there are a ton of channels we never watch.  As the Macworld Podcast’s Chris Breen noted, it would be awesome if Apple could partner with, say, Comcast, and have an Apple TV exclusive cable package.  This package would be relatively small, having only the most popular 30 or 40 channels (Discovery, History, AMC, etc.), but it would also be relatively inexpensive.  The key feature that really sets this apart from Netflix, however, is that it would also include locals channels – which of course includes local sports.  Live sports are arguably the biggest thing holding many people back from ditching cable entirely in lieu of Netflix.  I think my family would seriously consider switching to this Apple TV package.

3.  Supersized Today View
In iOS 7, there’s this really cool feature of notification center called the Today View.  Basically, it shows you your calendar, reminders, stocks, and the weather.  Even better, in iOS 8, third-party app developers will be able to create Today View widgets, to give you even more info (like sports scores).  Since the Apple TV is connected to a large screen, I think it has huge potential for this kind of glanceable information.  What I’m thinking of is a huge dashboard that you can look at first thing in the morning.  Instead of waking up and having to check four different apps to see how your day is going to pan out, you could just see one big screen on your Apple TV.  This would be similar to what morning shows do on The Weather Channel.  They have their main show playing in the majority of the screen, but there’s other stuff on there as well.  At the bottom is a news ticker; on the sidebar, a brief weather summary and flight delay information.  I would love to wake up and turn on the TV to see this dashboard.  I want a breaking news ticker on the bottom, and weather and traffic on the sides.  In the middle could be lots of boxes scrolling my texts, emails, Twitter feed, and so on.

And finally, I hope as much of this as possible will happen through software updates, and not hardware updates.  As cool as these features would be, I find it hard to believe my family would spend $200 to replace the two Apple TVs we already have.  Especially when most of us would probably benefit from watching less TV in the first place.  ••