Netflix may face ‘uphill battle’ in Washington, analyst says

“Netflix’s letter suggests that the company is legitimately concerned about broadband providers’ ability to raise Netflix’s distribution costs,” Gallant writes, referring to Hasting’s concerns over usage-based pricing and fees for content distribution networks such as Level 3.

“After public comments by Hastings about these issues in recent months, the letter represents Netflix’s most formal step yet in Washington toward taking on the cable and telco broadband providers,” Gallant said. 

But succeeding may be tough. Gallant cites a “challenging political environment to win support for new government scrutiny of broadband providers” in part because President Obama has taken a “more business-friendly tone.” 

“A the moment, there does not appear to be a political catalyst for congressional Democrats to become involved,” he said. 

He added that the Justice Department or the Federal Trade Commission could also decide how carriers’ actions affect Internet companies, but “involvement by antitrust agencies also may be an uphill battle.”