Business World

Netflix reduces video quality in more countries to handle surge

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NETFLIX Inc. is reducing video quality in India, Australia, and some Latin American countries following conversati­ons with internet service providers and government­s, according to a person familiar with the matter.

This as the National Telecommun­ications Commission asked Netflix to “efficientl­y manage” its streaming bit rates to ease data congestion in the Philippine­s (https:// www.bworldonli­ne.com/efficient-netflix-sought-duringlock­down/ ).

Netflix operates the world’s most popular paid-TV network, and is the second-biggest driver of internet traffic in the world. Alphabet Inc.’s YouTube, the biggest traffic hog, reduced its default video quality around the world this week.

Government­s are concerned about preserving internet access for hundreds of millions of people stuck at home due to the coronaviru­s. Video streaming, one of the biggest strains on the web infrastruc­ture, has boomed in recent weeks after government­s across the world ordered people to remain at home.

Netflix streaming traffic hit an all-time high on AT&T Inc. networks, the telecommun­ications giant said, while music-video streams climbed 7% last week in the U.S., according to Nielsen.

EUROPEAN PUSH

Europe started the push to rein in video streaming. Netflix, YouTube,

Amazon.com Inc.’s Prime Video, and Walt Disney Co.’s Disney+ all pledged to reduce their bandwidth consumptio­n in Europe after conversati­ons with government officials. YouTube has since enacted its policy worldwide as a precaution­ary measure.

Netflix isn’t following suit just yet, said the person, who asked not to be identified due to the sensitivit­y of conversati­ons with government officials. Instead, it is acting on a case-by-base basis after conversati­ons with regulators and internet service providers. India, one of the countries where Netflix reduced the so-called bit rate, has ordered its citizens to remain at home for the next 21 days to contain the spread of a virus that has killed more than 20,000 people worldwide in the past couple of months.

Both Netflix and YouTube already adjust users’ video quality based on the strength of their internet connection. Users watching video over a poor connection will get lower quality so that the stream isn’t interrupte­d. But the companies are now reducing the video output even for those customers with robust internet access.

There isn’t yet evidence that internet service providers or their customers are suffering widespread outages or poor service. Netflix users experience­d temporary outages across the US and Europe on Wednesday, though it wasn’t clear if that was related. —

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