So much for net neutrality: Netflix has struck a deal with Australia’s iiNet ISP to exempt its traffic from iiNet’s broadband caps. This means that iiNet subscribers will be able to watch as much Netflix as they want, without the fear that their viewing will lead to any overage charges. But it’s also bad news for any upstart trying to compete with Netflix, and it runs counter to the company’s long and very public defense of net neutrality.
[company]Netflix[/company] said on Monday that it is going to launch on March 24 in Australia and New Zealand. As part of the announcement, iiNet revealed that it will exempt any Netflix traffic from its customers’ monthly bandwidth quotas.
iiNet currently has a 100GB cap for its cheapest broadband plans, and charges customers who exceed that quota $0.60 AUS (about $0.47) per additional gigabyte. The company also has 300GB, 600GB and 1TB plans. Netflix estimates that its customers use up to 7GB of data per hour for the company’s best-looking 1080p HD streams. However, averages are typically much lower.
In the past, Netflix has taken a strong stance against broadband caps. In 2012, its CEO Reed Hastings said that Comcast was violating net neutrality priciples by exempting its own online video services from its broadband caps. “Comcast should apply caps equally, or not at all,” Hastings wrote on his Facebook page back then.