Net neutrality is about video

I have had trouble formulating a view on net neutrality. Today I had an epiphany which simultaneously crystalized my view and explained why I've taken so long to decide.

Net neutrality is all about video. The carriers are losing cable revenue to unbundling pressure, in large part driven by streaming video. They want to recoup that revenue by charging streamers a premium for data-intensive video delivery.

Because of the current net neutrality regulatory environment, they can't do that. Once things change, they will endeavor to charge big streamers like You Tube (alphabet), Disney, etc. more to carry their digital video freight to get their cut of the revenue it generates.

The average consumer will take on the cost if and when the streamer pass on these costs to viewers. The streamers could of course also lay the increased cost of on advertisers or eat it and lay the cost on shareholders. Typically the outcome in these cases is a combination of all three.

The proverbial invisible hand of the marketplace will be the ultimate arbiter. If streamers charge too much for content, consumers will churn, hurting ad base. Similarly, if carriers make their costs to streamers prohibitive, they will eat into their own revenue. So pricing decisions will have to reflect elasticity, which is the quintessential function of the market.

In the event of market failure, the public sector will re-engage. Recent regulatory actions in the EU have shown that even behemoths such as Google can be brutally humbled by an aroused public expressing its displeasure through its government.

Therefore I have decided that I am in favor of the deregulation. I welcome debate.