Verizon VS Netflix

Over the last couple months when Verizon (VZ fortune 500) users have been using Netflix the streaming of their movie or TV show that they are watching has been slowed down.  Verizon wants Netflix to pay them for using their FIOS network.  Netflix traffic can take up to a third of FIOS’s network in the United States at peak times.  This is out of the norm because broadband service usually doesn’t make each other pay for using their networks because they both benefit from the traffic.  Netflix states that Verizon is not improving their network (VZ fortune 500), and they are using their monopoly to put in a “toil road” for Netflix using Verizon’s network.  While Verizon said that they wanted to do whatever will benefit both services.

This whole dispute relates to net-neutrally.  The question is does Verizon have the right to make Netflix pay for using the network VZ fortune 500.  The simple answer is that they don’t have the right because Netflix cannot help if some of their customers use VZ fortune 500 to stream movies and TV shows.  If we look at the act utilitarianism; if Verizon would improve their network it would coast them in the short run but, in the long run it would strengthen their relationship with Netflix.  Also giving VZ fortune 500 users a better network and faster streaming speeds which would increase their happiness.  Plus Netflix would be happy that they won’t have to pay for the people streaming on Verizon’s network.  If Verizon makes Netflix pay for the broadband service, Netflix may not stream on XZ fortune 500 networks.