Netflix
IN PHOTO: The headquarters of Netflix is shown in Los Gatos, California in this file photo taken September 20, 2011. Netflix Inc reported higher profit that beat Wall Street expectations for the quarter that ended in March, boosted by the addition of 2.25 million customers to its movie and TV streaming service in the United States. REUTERS/Robert Galbraith/Files Reuters

Optus CEO Allen Lew expressed at the CommsDay Summit conference on Monday that the telco is likely to charge video streaming services providers like Netflix, Presto and Stan to ensure quality video streaming to its internet subscribers, as per latest reports.

Netflix was launched in Australia in March and according to ZDNet report, Optus and iiNet have not metered the data used while accessing the service to their customers’ monthly data allowance on the fixed networks. Australia’s internet service providers have witnessed noticeable impact on their fixed line networks and iiNet says that 25 percent of its network traffic comes from Netflix, reports ZDNet.

"To ensure the best customer experience that is cheap for the user, we need to ensure that the OTT providers -- whether they are Netflix or others -- understand that to preserve the network quality and to give you a HD video in the home, they need to work collaboratively with us,” the ZDNet report quoted Allen Lew, CEO of Optus, as saying.

What has Telstra decided for Netflix?

Though Optus has revealed its intention to possibly impose a fee on Netflix for quality video streaming, Telstra has no plans to charge over the top (OTT) players to deliver content to its customers through its network. ZDNet quoted, Kate McKenzie, Telstra’s Chief Operations Officer, saying, the telco had been regulating its own network traffic for the arrival of video streaming services like Netflix, Presto and Stan but the company needs to figure out ‘new business models’ that would pay back the investments made in networks.

Netflix’s stand on net neutrality

Netflix has maintained a strong stance on net neutrality. The U.S. streaming media company had battled in U.S. to ensure net neutrality in the country. When Netflix came to Australia, Optus and iiNet offered their customers to access Netflix unmetered and users could download data that was not counted against their monthly quotas. Since then, both Optus and iiNet have not counted the data consumed by their customers in accessing the service. Netflix has expressed regret over its decision and the company said that, it goes against the company’s take on net neutrality, explains the ZDNet report.

(For feedback/comments, mail the writer at pragyan.ibtimes@gmail.com)

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