Netflix is looking to measure the connection speeds of ISPs in Australia in order to figure out the best candidate to provide an optimum streaming experience to its local customers. Such an effort comes after some of its customers complained of slow connection speeds. The company already gauges ISPs’ speeds in the U.S., Canada, Luxembourg, Chile and Sweden.
Faster internet improves overall customer experience
Under the plan, the SVOD service, starting today, will provide its local users with an ISP Speed Index that will enable them to identify the best service provider for streaming Netflix. Moreover, these indices will be updated every month and the results, which will be “self-explanatory,” will be documented online on blog.netflix.com, says a report from SMH.com.au.
According to the U,S, company, faster internet implies better video quality, less time to stream content with few or no interruptions and as a result, a better customer experience. Further, fast and smooth internet service is important for Netflix and other SVOD companies to succeed. According to a recent study by Conviva, a global video analytics company, if the connection is slow or is being continuously interrupted, at least 25% of users tend to turn off the streaming service in the first five minutes of their viewing time.
Rising Netflix traffic
Since its Australian launch in March, the streaming company has shown an increase in bandwidth consumption, and currently it accounts for 20% to 25% of gross internet traffic in the country.
Prior to its arrival in Australia, the SVOD service signed un-metering agreements with two of the country’s biggest ISPs, namely, Optus and iiNet. This means the data consumed by local customers to access Netflix content will not count toward their monthly data allowances. Although users have appreciated this effort, the company’s CEO, Reed Hastings, has been claimed to lament the decision. In a meeting with shareholders, the CEO stated that though un-metering deals are common in Australia, such an attempt to rid consumers of data limits essentially gives way to “discrimination among video services.” In addition, he indicated that the company will not encourage such agreements anymore.
Nevertheless, the company’s high usage of bandwidth has raised concerns among analysts who doubt that the country’s broadband infrastructure will be capable of supporting the load of a large amount of video streaming.