Netflix Throttles Customers For Their Own Good

The Wall Street Journal: “Netflix, a leading proponent of open-Internet rules, has been lowering the quality of its video for customers watching its service on AT&T or Verizon Communications wireless networks” Netflix says the throttling is in the best interests of its customers because it protects them “from exceeding mobile data caps … Watching two hours of HD video on Netflix would consume up to 6 gigabytes of data, Netflix says. That is an entire month’s allowance under an $80 a month Verizon plan.”

“Netflix said it doesn’t limit its video quality at two carriers: T-Mobile and Sprint Corp., because ‘historically those two companies have had more consumer-friendly policies.’ When customers exceed their data plans on Sprint or T-Mobile, the carriers usually slow their network connections, rather than charge overage fees.” Jim Cicconi of AT&T says the carrier is ‘outraged to learn that Netflix is apparently throttling video for their AT&T customers without their knowledge or consent.’ Jan Ozer, a consultant … said Netflix’s strategy is a smart one,” but suggests they should be more “upfront” about it.

“The issue came to light after T-Mobile US Inc.’s chief executive last week said Verizon and AT&T customers were receiving lower-quality Netflix streams. The carriers denied throttling Netflix videos. The fact that Netflix, not the carriers, is responsible for the lower quality illustrates the dilemma mobile-app makers face with data caps.”

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