Both Optus iiNet and Telstra have said that traffic on their networks have “dramatically” increased following the launch of Netflix. Optus is believed to have signed up over 25,000 new consumers to their $90 unmetered content deal that comes with six months of free Netflix streaming.
Some consumers have told SmartHouse and ChannelNews that they are “struggling to get an Internet connection” in their neighbourhood.
iNet has blamed Australia’s biggest telecommunications company, Telstra, for the slower internet connection speeds that have hit some of its customers since the arrival of Netflix.
iiNet said that Netflix streaming is now accounting for 15 per cent of its total consumer traffic.
But several customers vented their frustration on social media and to SmartHouse saying the surge in demand for Netflix has slowed their internet connection speeds.
A recent Reality Mine report on Digital Video Trends reports that heavy Internet-video users in the USA spent 35% of their TV-viewing time watching streaming TV shows and movies on television and connected game consoles last year. That’s up from about 20% in 2013.
A Telstra source said that if that happens in Australia broadband networks could slow down considerably ahead of the National Broadband Network roll out to the bulk of Australian homes. They also said that the problem could get worse as school children on their Easter break log onto streaming networks a move that could send broadband bills soaring.
That figure compares favourably to about 17% of consumers who watched streaming content on computers – down from nearly 30% in 2013 – and less than 5% of users who view streaming content on mobile devices, tablets and eReaders, which was also down significantly from the year prior, according to the survey.
As these connected devices continue to offer consumers the ability to watch both Foxtel and original content from the likes of Stan and Netflix without a cable subscription, another interesting trend is developing. With all the talk of consumers watching more and more content on iPhones, tablets and computers, it seems that viewing on big-screen TVs is also on the rise.
Researchers claim that while video viewing on mobile phones, iPads and other devices provides convenience for people on the go – and is particularly prevalent among millennials – for many others, the ideal and easiest way to experience quality, high-definition streaming video is on a big-screen television set through Internet-ready smart TVs and connected devices.
Earlier this week LG showcased several new large screen TV’s that have been specifically configured to stream services like Netflix.
Digital media research firm eMarketer estimated that nearly 55% of all Internet users will stream video content and conduct other Web-based activities through a connected TV at least once a month in 2015 – up from 45% in 2014.
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