Netflix Australia Admits Mistake In Giving Optus And iiNet Subscribers Unmetered Access

Netflix Australia regrets giving Optus and iiNet subscribers unmeterd streaming. When the U.S. streaming company launched Down Under in March, subscribers from the two ISPs were given a very sweet deal. However, Netflix has now expressed remorse, saying the decision violated its own core beliefs of strong net neutrality.

For a short time, Optus and iiNet subscribers enjoyed unlimited access to Netflix content streaming without continuing their monthly data cap. The deal was highly criticised for favouring subscribers of select ISP companies over the others.

U.S. Netflix has been battling ISPs over net neutrality, an issue which they strongly support, for years. It is why it appeared ironic that it has contributed to the harm of the cause. Upon the service’s launch in Australia, chief executive Reed Hastings even reiterated the company’s stance on net neutrality, telling Gizmodo, “We want to make Internet unmetered. Period.”

It turned out Netflix was unmetered only for two ISP subscribers, leaving the others hoping for the same favoured treatment. However, the company has since realised its error. In its 2015 first quarter earnings report, it admitted that its deal with the Australian ISPs to allow subscribers unmetered streaming was a mistake.

“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),” the company’s statement reads. “We should have avoided that and we will avoid it going forward.”

Net Neutrality

Internet neutrality is a principle that all Internet Service Providers should treat all data on the Internet equally. Simply put, users should experience the same speed and get the same availability of websites, regardless of the content or who owns it.

This is a rampant issue because there are ISPs and companies, as well as politicians, against the concept. If it is such a fair idea, then why are they against it? It could all be down to competition advantages. If a company wants to trump its competitors online, it can pay an ISP to make its web service faster to upload for users than their competitors’. It can also ask the ISP to block the other companies’ website from loading.

The deal Netflix had with the two Australian ISPs bordered on, if not total, infringement of net neutrality. Giving Optus and iiNet subscribers unmetered access to its services undermine Netflix’s position on the matter. Some even argued it viewed other ISP subscribers as unvalued customers. Fortunately, Netflix has vowed not to make deals like that again.

To contact the writer: a.lu@ibtimes.com.au