One assumption regarding net neutrality is that access providers will inevitably limit the service they provide based upon their rational best interest - the almighty dollar. This is best scene in the negtotiations over fees Netflix paid to Comcast over bandwidth usage. Once access providers see their income streams dry up, corporate interests lobby for high barriers to entry to stifle competition, ensuring their position in the market. This is exactly what has happened as consumers, tired of high costs and lackluster service, have done in attempt to get content at a better price. Companies such as Netflix and Hulu benefit when cables subscriptions are terminated. The institutionalization of access providers to control content from media platforms in the market allows them to monopolize supply as well as pricing (technically an oligopoly). The ability of Comcast and Verizon to control bandwidth as revenue streams search for better investments is directly analogous to the movement of capital at the peak of the financial crisis. Investors could no longer rely on income from MBS as the first wave of option ARMs reset- the real price for real estate collapsed when demand was exhausted. This is exactly what happened to cable television subscriptions. The movement of capital, seeking the best return on investment, substituted internet service for cable and cash for mortgage backed securities. The fundamental survival technique is evolve or die- become acquired or parish, consolidate and reform to provide better service at a lower cost- as the new wave of youtubesphere takes over. But, if you run a 200 billion dollar corporation, it's much simpler to lobby that infratructure and bandwidth are finite, rather than innovate. The slow collapse of traditional interests gravitates to the institutionalization of market power and ultimately results in higher prices for consumers. Let's hope that the innovators can continue to provide the best choice for consumers.
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