Netflix Helps Comcast Customers To Deal With Data Caps

Netflix's new encoding process will reduce the data needed to stream shows.

Cable internet service clients with data limits and subscription of Netflix service would soon be getting some relief. The streaming company is taking steps to re-encode its whole library to carry out the optimization of the bitrate at which it is able to send video stream to users’ homes based on per title.

In other words, the streaming service would not use as much of a user’s valuable Comcast data. The measure also indicates that clients with limited speed of Internet – for instance, those in markets of different countries – would be able to enjoy the internet media service in a better manner compared with rest of the streaming services. They would witness better quality of pictures and less buffering.

The per-title encoding approach is able to offer other means for the online streaming media company to ensure that it differs from the growing rivalry. For an internet subscriber without a pay-TV subscription, video streaming service is the main type of their entertainment in most cases.

Chief executive of Comcast Corporation, Brian Roberts, said only 5% of its clients are bothered by data limits. Whereas about one-fifth of its internet subscribers are not availing its video facility, they might be availing a video facility from a satellite or telecom rival. Estimating the Internet subscribers’ percentage without any kind of pay-TV subscription at about 5% is a logical assumption, which is more in line with national figures for broadband-only houses.

According to Fool, the proportion of clients troubled by data limits is proportional to the percentage of clients who depend on Netflix and the rest of streaming facilities for video entertainment. This indicates that cord-cutters are more adversely challenged by data limits compared to pay-TV subscribers.

The company on the other hand is blamed for utilizing up all of the data allocated by a client. This could cause subscribers to view less on the streaming facility and devalue it, reducing the ability of Netflix to raise rates and retain subscribers.

However, this is not the first time the internet media giant has felt the need to fight against Comcast as far as the amount of data sent to its network is concerned. Despite of its buying up transit on all the offered routes into Comcast network that did not require any kind of fee two years ago, it continued to keep all lanes congested for traffic of Netflix and restrain it from moving ahead.