Netflix Targets Australian ISP Broadband Speeds With Monthly Performance Ratings

It also says that it will comply with all national and local laws in terms of new Netflix tax.

Netflix (NASDAQ:NFLX) has announced that it will start rating the internet connection speeds of various Australian internet service providers to determine which one of them can provide the best prime time viewing for its video streaming service.

This comes after many of its customers have complained of ‘unusable’ internet, i.e. the unpredictable internet service, which sometimes goes out of order. The announcement is that it will start providing monthly updates to its customers, as to which of the ISPs will provide the best prime time viewing experience.

The company already does ISP ratings in the US, Canada, parts of South America, particularly Brazil and Chile, and European countries, such as Sweden and Luxemburg. The ISP ratings for Australia and New Zealand will be released soon on a website at blog.netflix.com.

Since its launch in the Australasian region back in March, Netflix has seen its bandwidth usage and total traffic from internet service providers to soar between 20-25%. This has led to many tech analysts concerned about the infrastructure available to take up a large chunk of video streaming.

When Netflix launched its services, it agreed to untethering deals, in which customers can watch online videos without having to think about their monthly internet data allowances but Netflix Australia CEO admits that it was a mistake.

The streaming giant is having a roaring success so far, thanks to its better quality video and quicker start times for streaming internet TV shows and movies. It has entered into agreements with two ISP providers, Optus and iiNet, as the exclusive Internet providers.

Around the world, wherever Netflix operations are available, provision of strong internet services is a prerequisite for the company to successfully operate their Internet television. In fact, according to a study from global video quality analytics, Conviva, at least 1 in 4 respondents said that they would switch off their streaming service after every four minutes if the service is even slightly disturbed. That may be because if customers are watching the most critical part of the movie, and if the internet goes off, then they won’t hesitate to shut it down just to let the internet service providers know that even a minimal disruption will not be accepted.

Meanwhile, in response to the government’s plan to impose a tax on the Internet television companies, the organization says that it will follow all the relevant local and national laws, an implied indication that it will not mind the newly imposed tax.

Netflix Stock price ended the day at $617.87, a gain of 0.75%. 

Netflix Rival Foxtel Will Launch Its iQ3 On Monday

Local companies like Foxtel will be launching services in order to turn attention towards itself prior to Netflix's massive launch.

Netflix, Inc. is the streaming service giant. No other platform has yet been a tough competitor to the service for years now. It has planned to enter every corner of the world posing imminent threat to the local TV providers along with other satellite services etc. Currently, the company is focused on its massive launch in Australia and New Zealand. Prior to its launch, the company has made enemies and local companies are already launching new services and plans to compete with the streaming giant once it enters the region.

Netflix (NFLX) big launch in Australia is scheduled on March 24. Prior to its launch in the region, local companies like Foxtel and Stan are finding ways to strengthen their position despite of the streaming services giant arriving in the country. According to sources, it is believed that Foxtel is all set to launch its iQ3 on Monday, a hotly anticipated set top box.

Foxtel has scheduled the launch of its streaming video recorder service just a few hours before Netflix enters the Australian region. According to The Australian, “The new iQ3 set-top-box has been under development for some years and combines broadcast derived programs and media streamed from the internet into one seamless experience. The iQ3 extends the current ‘start over’ capability, where a viewer can go back to the beginning of a TV show that’s already started and watch it from scratch.”

It is believed that the iQ3 has a new and unique “look back” feature which will allow viewers to rewind or scroll backwards up to 24 hours in the past in order to watch any shows or programs that they have missed previously.

Sydney Morning Herald reported, “These new features turn a Foxtel subscription into more of a Netflix-style on-demand service rather than the traditional linear viewing experience. It's not the iQ3's only nod to its new-world competitors, Foxtel is also adding "intelligent discovery" features which show you what's trending and even make suggestions based on your viewing habits.”

Moreover, Foxtel iQ3 has Ethernet as well as WiFi connectivity. The device can allow users to store and save more than 345 hours of standard definition recordings.

It will be not wrong to say that Netflix Streaming has made more enemies than friends in the region. Posing imminent threat to all the established businesses in Australia, the local companies along with pay TV cable operators will have to take a bold step forward and bring their A game. Foxtel played a smart strategy by launching its service right before Netflix’s launch in order to turn consumers’ attention towards itself.