Netflix more “social” spent more than $ 1 million to change the law
Yesterday Netflix reported their forthcoming opening its services to new social features. The U.S. Congress approved a bill that would allow companies like Netflix or Hulu rental share your data with Facebook and habits. Was modified and remained a law since 1988 and why Netflix would have spent two million dollars in the Lobby to make it so.
As explained Netflix after approval amending the Video Privacy Protection Act of 1988:
We are pleased to announce that the Senate has approved the proposal promptly after the support of the House. We intend to introduce social features for our partners in the U.S. in 2013, following the signing of the U.S. president.
The change means that companies like Netflix and they allow users to share information about the service, features that already exist in other markets such as Canada and Latin America, though the largest market Netflix is in the United States, reason for to put pressure on regulatory change.
This Netflix reportedly spent over a million dollars in lobbying Washington to push through a law that will give greater visibility to the current times, users can share their habits on Facebook.
An expense that may seem exorbitant, goes through a normal practice in technology companies. Although the overall profitability of Netflix remains volatile, business spending in Washington is not far from those of the rest of the sector.
Apparently, Netflix formed a political action committee (PAC) earlier this year, a committee whose goal was to reform the law on protection of the 1988 video as well have been last. A million to press for reform that is both crystallize that if you look at other companies.
According count from Ars Technica, Amazon spent $ 4 million on lobbying in the last two years. Facebook used the same amount as the budget for the lobby. However Comcast reportedly spent a whopping $ 32 million in Washington in the last two years.
Anyway, Netflix moving toward social components in service could result in millions of revenue because advertisers would access portal users more quickly and clearly, as indicating tastes in social networks.Tags: Lobby, Netflix, social networks