AT&T: "Arrogant" Netflix is looking for a free lunch

Netflix is trying to shift the cost of its service on to all Internet subscribers, AT&T claimed on Friday.

“As we all know, there is no free lunch, and there’s also no cost-free delivery of streaming movies. Someone has to pay that cost,” Jim Cicconi, a senior executive vice president for AT&T, wrote in a blog post.

Cicconi is firing back over Netflix’s blog post from Thursday in which the online video site called for new federal rules to ensure it can connect to Internet providers for free.

Netflix CEO Reed Hastings warned that without government intervention, Internet providers could extort payments out of websites, ultimately strangling competition and growth online.