Netflix says it ‘should have avoided’ unmetered Deals with Optus and iiNet

If you’re an iiNet or Optus user, we are sure you’re adoring every second of un-metered Netflix streaming, as the streaming giant (Netflix) that signed the contract in the first place dislikes it. The streaming giant has stated that in signing contracts with iiNet and Optus to allow viewers a right to use Netflix without it including towards Netflix’s download quota, the firm acted in contradiction of its strong position for internet neutrality.

The agreement, which permits iiNet and Optus consumers to watch limitless Netflix without breaking their data limits, seemed to weaken the USA Company’s promise to net neutrality.

In a message to stakeholders, Netflix deliberated its constant Net Neutrality combat in America. Net Neutrality, the norm that all the traffic passing over the World Wide Web should be treated in the same way, instead of have some content billed or slowed in a different way by ISPs (Internet Service Providers).

On Wednesday’s report derived after Netflix was blamed at insincerity in the US tech media in last month (March), when update of its agreement with Optus and iiNet came out. The Verger (American Website) stated at the time, “Zero-rating schemes like Netflix’s new deal with iiNet (or like T-Mobile’s controversial music freedom program, or AT&T’s “sponsored data” program) clearly violate the principles of net neutrality. So was Netflix lying to its customers and the public about its stance the whole time?”

The streaming giant ponders that by signing these agreements and relations with Internet Service Providers like iiNet and Optus, it is efficiently surrendering a battle on Net Neutrality. Netflix added in its report that it would not ‘want’ to do any longer unmetered streaming agreements.

Reed Hasting (Netflix CEO) in an interview with Gizmode Australia said, there is merely any requirement for the data limits anywhere around the globe. His words were, “There’s no reason for data caps. We want to make the internet unmetered. Period. The capped model is antiquated: we want to make it about speed. 10Mbps will cost more than 1Mbps and 50Mbps will cost more than 10Mbps and that makes sense. Historically, there was so little content in Australia that many users went over the international links and those are pretty expensive, but now there’s more and more content and content caching in Australia”.

However the firm (Netflix) is now devouring a 2nd opinion. On Thursday, an investor message in the firm’s Q1 results, streaming giant backed its strong position on net neutrality around the world, and also stated that it had made a decision not to sign these sort of agreements anymore.

Netflix said that, “Data caps inhibit internet innovation, and are bad for consumers. In Australia, we recently sought to protect our new members from data caps by participating in ISP programs that, while common in Australia, effectively condone discrimination among video services (some capped, some not). We should have avoided that, and will avoid it going forward. Fortunately, most fixed-line ISPs are raising or eliminating data caps in line with our belief that ISPs should provide great video for all services in a market and let consumers do the choosing”.

Cliff Edward the director of corporate communication and technology said that, the agreement wasn’t the hole in the Netflix’s strong position for internet neutrality, however it is the Internet Service Providers themselves that finalized the decision to allow the data free of cost. The streaming giant has a peering policy, and is raking out of NSW-IX, Equinix and Megaport in Sydney. It will enable the Australian’s users to access Australian Netflix library with easy.

Edward also mentioned that, “The idea is essentially, they don’t have to pay as much for the use of the trans-Pacific cable to get the content, so they can pass on the savings to customers.”

The co-founder of an Australian streaming firm Stephen Langsford has said that his firm definitely doesn’t impress much that differentiated against. He added, Netflix’s agreements were only for publicity stunts that seized headlines. According to Stephen the reality is that, enlightened online companies are stimulating their data limits in Australia, so that’s the reason the fight is dropping away.

He also added that, “Internet Service Provider Telstra had currently lifted his private data limit from 200 to 500GB. The world is moving towards unmetered, and what you’re seeing is the lifting of data caps across the board … The metering, unmetering argument is a bit of a red herring. People were making a big deal over something that wasn’t a big deal. Caps and limits and preferred access does hamper usage and opens itself to abuse of market power. Encouragingly, data caps [in Australia] are heading in the right direction.”

The representative from Optus stated that, “thinks unlimited data is the best option for anyone who wants to stream lots of entertainment content. We chose to un-meter Netflix content so that no matter how much data is included in a plan, all our broadband customers can watch as much Netflix as they want”.

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Top/Featured Image: By Alan Levine / Flickr

Stella Strouvali Stella is a certified writer and zealous wordsmith, a true fan of Placebo, technology, Panionios and wellness. Still, her true passion has to do with eagerly learning new things and passing them on to others. “An unexamined life is not worth living”, to quote Socrates.
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