It's a pipe dream - how do you regulate the internet? Netflix is simply another streaming service - like YouTube...
This is the first thing that came to mind when I heard about the regulation.
There are already dozens of sites where you can easily stream _film(s)_ for free. I wonder how Netflix is different in their eyes, considering in this case you also have to eventually pay a subscription fee.
Their view is pointless but I doubt the folks at KFCB will dare admit it publicly now that they have declared their stand.