Coronavirus: Netflix ‘to reduce the quality of its streams’ as coronavirus boosts demands on NBN

The move comes as the NBN continues to be squeezed by skyrocketing usage due to the coronavirus epidemic.

NBN usage was up by about 5 per cent last week, a figure that's set to soar as Australians across the country work and study from home. Picture: AFP

Netflix is in talks to reduce the quality of its streams in Australia, as the NBN continues to be squeezed by skyrocketing usage due to the coronavirus epidemic.

The Australian can confirm that the US streaming giant has had discussions with the government and internet service providers including Telstra about limiting the quality – and therefore internet traffic – of Netflix shows and movies.

If implemented, the move will mean streaming quality will be presented at its lowest bit rate.

Watching high definition films and shows on Netflix uses about 3GB of data per hour - three times more than standard definition – and it's estimated that streaming services including Netflix account for between 70 and 80 per cent of Australian internet traffic during peak times.

NBN usage was up by about 5 per cent last week, a figure that's set to soar as Australians across the country work and study from home.

The plans follow a similar move in Europe, announced overnight, which Netflix said should reduce its traffic there by around 25 per cent.

A Netflix spokesman declined to comment on its Australian talks but pointed to a statement on Europe.

"Following the discussions between Commissioner Thierry Breton and Reed Hastings – and given the extraordinary challenges raised by the coronavirus – Netflix has decided to begin reducing bit rates across all our streams in Europe for 30 days," the spokesman said.

"We estimate that this will reduce Netflix traffic on European networks by around 25 per cent while also ensuring a good quality service for our members.”

A Telstra spokesman said the telco is working with Netflix to understand its plans.

"Many of our streaming partners have video optimisation capability, which helps to provide an enhanced experience for our customers such as viewing content in 4K," the spokesman said.

"Given we are expecting a significant increase in network traffic over the coming weeks, we are speaking to our streaming partners about whether they can limit the resolution of their streams should network capacity become a concern.

"We are speaking with gaming companies to understand their release dates, and whether these can be staggered over time to help manage traffic across the network."

A spokesman for the minister for communications confirmed the discussions, which involved companies including Netflix “temporarily dialling back the default very high ‘bit rate’ they use to transfer data over the network.”

“While ordinarily and not currently an issue, we note that even minor bit-rate adjustments on high volumes can contribute to lessening network load without any significant change in quality,” the spokesman said.

“Such temporary measures are already in place in Europe, and we welcome the cooperation of the streaming platforms and their willingness to do their part in maintaining optimal broadband for all Australians.”

On Wednesday NBN Co announced it would give up to 40 per cent extra bandwidth to internet service providers for free, in response to increased demand as more people work and study from home.

“The (40 per cent) is equivalent to the higher end of increased data bandwidth requirements that we have seen in countries such as Italy, which have mandated work-from-home arrangements,” NBN boss Stephen Rue said.

“The additional capacity pricing relief will be offered to RSPs at no additional cost and will help support significantly greater data use on the network throughout the day and during peak evening times. The offer will be made available to the industry in time to meet the steadily growing data consumption patterns of residential and business customers."