Netflix wants to abolish data caps in Australia

Kevin Spacey as Frank Underwood in House of Cards, which will be available on Netflix Australia / Supplied

Netflix, the giant US media streaming service, wants to get rid of internet data caps in Australia because they’re stifle innovation.

“Data caps inhibit internet innovation and are bad for consumers,” Netflix said when releasing its March quarter results.

“In Australia, we recently sought to protect our new members from data caps by participating in ISP programs that, while common in Australia, effectively condone discrimination among video services (some capped, some not).”

Netflix has deals with both Optus and iiNet for uncapped internet data for those subscribing to Netflix.

However, Netflix says it should have avoided doing that and will avoid it in the future.

“Fortunately, most fixed-line ISPs are raising or eliminating data caps in line with our belief that ISPs should provide great video for all services in a market and let consumers do the choosing,” Netflix said

Netflix successfully launched in Australia and New Zealand on March 24, a move which added a potential 8 million broadband households to its market.

The US company is competing in a busy market against local players including Foxtel and Seven’s Presto and Stan, a $100 million Nine and Fairfax Media joint venture.

“In ANZ, Netflix benefited from high consumer awareness, a fervent fan base for original series like House of Cards and Orange Is The New Black,” Netflix says.

While Netflix didn’t release subscriber numbers for Australia, it expects to add 1.90 million new customers outside the US in the second quarter.

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