Netflix Effect To Do Away With Data Caps

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‘Netflix effect’, a term coined by global infrastructure provider Akamai, is when the streaming video-on-demand player enters into a market which causes a spike in  Internet data use rates. Akamai mentioned that it wants to scrap the metered connection in Australia, and is already in discussion with telcos over its plans to do so, says a report from the Australian.

Netflix wants low-priced Internet

With its entry in Australia, Netflix has already shaken up the entertainment industry. Netflix is making a big effort to eliminate the data caps or metered internet in the country. The company is very clear that it wants internet to be cheaper in Australia to facilitate viewing and streaming online content, says the report.

Brad Rinklin, global chief marketing officer, said that the internet habits of Australians were distinctive, to some extent due to the capped data plans that made watching video online potentially very costly. Akamai is making efforts to bring the price down for the telcos to deliver quality broadcast content across carrier networks.

“Internet service providers are incurring huge network costs as people watch content from companies like Netflix,” Rinklin said, adding that they are making efforts to get rid of some of the restrictions, which should be noticed in the quarters to come, according to the report.

Behavioral intelligence is key

Internet price capping potentially makes a lot of difference, and this makes Austrialia is different from almost any other market in the world. Akamai has recently begun to deliver online broadcast coverage of the cricket World Cup, and has Australian clients in the media, e-commerce and banking and finance sectors, including Fairfax Media and SBS.

Rinklin mentioned the “Internet of Things,” where an array of networked home devices becomes the norm, will also allow the change “exponentially.” He said that the shift in dollars relies on the amount of information one has from a behavioral intelligence and buyer standpoint. He added that the most challenging facet of Internet of Things is that businesses and consumers are extremely short attention-span editors, and that the attention span will shrink even further.

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