Netflix Inc. (NASDAQ:NFLX) is yet again at crossroads this time with regulators in Europe over the way it streams content. The European Commission is urging the streaming giant to switch default settings of how it streams content to Standard Definition, which consumes less bandwidth from High Definition.
Standard Definition vs. High Definition
A switch to standard definition, according to the regulators, will help relieve some pressure in the region’s internet infrastructure. In recent weeks people in the European Union have had to self-quarantine themselves as to avert the risk of contracting the deadly coronavirus.
Streaming services of the likes of Netflix, Disney Plus, and Hulu are experiencing an increase in traffic as well as the amount of hours that people stream content. This is in response to a reduction in social interactions on the outside, as people are being encouraged to stay and work from home to combat the COVID-19 Pandemic.
Netflix is not the only platform being urged to make a case for standard definition streaming by default. Other platforms have also been asked to do so. The switch from High definition to the standard definition should help lessen some burden on countries’ network infrastructure, especially in peak hours of internet.
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Surging Internet Traffic
Similarly, the regulators in Europe are urging telecom providers as well as internet providers to take the necessary steps and avert the risk of network congestions. With more people being forced to work from home, internet use continues to hit levels never seen before. Vodafone is one of the companies that has seen a 50% increase in traffic. Most of the traffic is going towards powering streaming services of the likes of Netflix.
the European Commission also pushing for responsible’ internet users to avert network congestion. Conversely, the commission is advocating for Wi-Fi use as opposed to mobile data. The use of the lower resolution of content on platforms such as Netflix should also help in combating network congestion.
Full story is also published here https://themarketsignal.com/netflix-inc-nasdaqnflx-urged-to-set-standard-definition-as-default-amidst-covid-19-crisis/