Huge for NTEK >>I guess Netflix loves to throttle
Post# of 96879
Posted On: 03/25/2016 5:21:03 PM
Huge for NTEK >>I guess Netflix loves to throttle its download speeds for certain customers. For Ultraflix customers it wont matter...
Ryan
Knutson
Shalini
Ramachandran
AT&T Inc. and Verizon Communications Inc. were on the defensive last week after accusations swirled they were throttling the quality of Netflix Inc. video on their wireless networks.
It turns out it was Netflix that was doing the throttling.
Netflix NFLX, -1.24% , a leading proponent of open Internet rules, has been lowering the quality of its video for customers watching its service on AT&T T, +0.88% or Verizon Communications VZ, +1.23% wireless networks.
The popular video service said Thursday that for more than five years it has limited its videos to most wireless carriers across the globe, including AT&T and Verizon, to “protect consumers from exceeding mobile data caps,” which may discourage future viewing.
Netflix said it caps its streams at 600 kilobits-per-second — far slower than what should be possible on modern wireless networks. It hasn’t previously disclosed the practice. The issue came to light after T-Mobile’s CEO last week said Verizon and AT&T customers were receiving lower-quality Netflix streams.
The fact that Netflix, not the carriers, is responsible for the lower quality illustrates the dilemma mobile app makers face with data caps. The majority of all traffic on wireless networks is video, so providers must balance video quality against data consumption. Watching two hours of HD video on Netflix would consume up to 6 gigabytes of data, Netflix says. That is an entire month’s allowance under an $80 a month Verizon plan.
An expanded version of this report appears on WSJ.com.
More from MarketWatch
Ryan
Knutson
Shalini
Ramachandran
AT&T Inc. and Verizon Communications Inc. were on the defensive last week after accusations swirled they were throttling the quality of Netflix Inc. video on their wireless networks.
It turns out it was Netflix that was doing the throttling.
Netflix NFLX, -1.24% , a leading proponent of open Internet rules, has been lowering the quality of its video for customers watching its service on AT&T T, +0.88% or Verizon Communications VZ, +1.23% wireless networks.
The popular video service said Thursday that for more than five years it has limited its videos to most wireless carriers across the globe, including AT&T and Verizon, to “protect consumers from exceeding mobile data caps,” which may discourage future viewing.
Netflix said it caps its streams at 600 kilobits-per-second — far slower than what should be possible on modern wireless networks. It hasn’t previously disclosed the practice. The issue came to light after T-Mobile’s CEO last week said Verizon and AT&T customers were receiving lower-quality Netflix streams.
The fact that Netflix, not the carriers, is responsible for the lower quality illustrates the dilemma mobile app makers face with data caps. The majority of all traffic on wireless networks is video, so providers must balance video quality against data consumption. Watching two hours of HD video on Netflix would consume up to 6 gigabytes of data, Netflix says. That is an entire month’s allowance under an $80 a month Verizon plan.
An expanded version of this report appears on WSJ.com.
More from MarketWatch
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