Netflix against taxing streaming companies to subsidize ISPs

Netflix co-CEO Greg Peters, opposed a European proposal force streaming providers and other internet companies to pay for ISP network upgrades.

"Some of our ISP partners have proposed taxing entertainment companies to subsidize their network infrastructure," Peters said in a speech Tuesday at Mobile World Congress in Barcelona. Netflix

"The tax would have a knock-on effect, reducing our investment in content - harming the creative community, harming the appeal of higher-priced broadband packages and ultimately harming consumers," he argued.

“ISPs claim these taxes will only apply to Netflix. But that will inevitably change over time," Peters said at MWC.

Data from Sandvine suggests that nearly half of global internet traffic is sent by Facebook, Amazon, Google, Apple, Netflix and Microsoft. Online video accounts for 65 percent of all traffic, and Netflix recently passed YouTube in video service traffic.

Peters said Nielsen figures show that "Netflix accounts for less than 10 percent of total TV time" in the US and UK, while "traditional local broadcasters account for over half of total TV time". Live sports represent a lot of him.

“As broadcasters continue to shift from linear viewing to streaming, they will also begin to generate significant amounts of Internet traffic – even more so than broadcasters based on their current audience reach and scale,” said Peters.

“Broadband customers, who are driving this increased usage, are already paying for network deployment through their subscription fees. Requiring entertainment companies (streamers and broadcasters) to pay more would mean ISPs charging twice for the same infrastructure.”

Peters pointed out that Netflix has spent heavily to build its own network that reduces the amount of data sent over traditional telecommunications networks.

"We've spent over $1 billion on Open Connect, our own content delivery network, which we offer for free to ISPs."

“This includes 18.000 servers with Netflix content distributed in 6.000 locations and 175 countries. So when our members press play, instead of the movie or TV show being broadcast from the middle of the world, it's being broadcast from around the corner – increasing efficiency while ensuring a high-quality, lag-free experience for consumers.”

Peters also highlighted Netflix's encoding technology that cut bitrates in half between 2015 and 2020.

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Written by giorgos

George still wonders what he's doing here ...

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