TechCrunch

In the letter to shareholders that accompanied today’s earnings report, Netflix addresses the recent circuit court decision that was seen as a threat to net neutrality.

That decision could potentially be a problem for Netflix, because it could provide legal justification for Internet providers to reduce the speed at which Netflix video content is delivered unless the company pays the providers. As the letter (which specifically calls out Verizon for challenging net neutrality in court) puts it: “In principle, a domestic ISP now can legally impede the video streams that members request from Netflix, degrading the experience we jointly provide. The motivation could be to get Netflix to pay fees to stop this degradation.”

If that happens, Netflix says it would “vigorously protest,” but the company suggests that things probably won’t go that far. The letter, which is signed by CEO Reed Hastings (pictured) and CFO David Wells, argues…

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