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Net neutrality must encompass peering and interconnection, said...

Net neutrality must encompass peering and interconnection, said Netflix Chief Financial Officer David Wells Tuesday at the J.P. Morgan Technology, Media and Telecom Conference webcast from Boston. Well’s comments were a sharp break from the FCC’s position that peering and…

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interconnection are not the same issue as net neutrality, but more like cousins. “If they are first cousins, they are a bit like 18th-century royalty cousins and might have a child along the way,” Wells said. Netflix has been “a little bit disappointed” in FCC Chairman Thomas Wheeler’s position, Wells said. “I would say just in general our interest is in a definition of net neutrality that is inclusive of all things that matter towards the delivery and the ability to control that interconnection with the consumer as an ISP,” Wells said. Netflix is planning “substantial expansion” in Europe beyond the Nordic region, with new launches expected in the coming weeks, said Wells, declining to give details. Netflix will have a “meaningful” amount of original programming in international markets, but isn’t willing to pay what it costs to lock up global rights for a series, Wells said. Netflix so far has gotten a “small reaction” to its recent imposing of a $1 increase in monthly fees for new subscribers, Wells said. Revenue generated by the fee increase will be used to fund content and expand gross margins, Wells said.