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Netflix regrets Aussie internet deal

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Streaming service Netflix says it regrets entering a deal with Optus and iiNet customers giving them unmetered streaming, saying it doesn’t promote a fair and equal internet.

Despite their ongoing fight against data caps imposed by internet service providers, Netflix Australia signed arrangements with several Australian ISPs upon its launch last month.

In an investor note leaked by Gizmodo, the streaming giant conceded it had acted against its fight for net neutrality, which calls for all traffic on the internet to be treated and billed equally.

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“Data caps inhibit Internet innovation and are bad for consumers,” Netflix wrote.

“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).

“We should have avoided that and will avoid it going forward.”

Speaking to Gizmodo ahead of the Australian launch, Netflix CEO Reed Hastings called for an end to data caps.

“There’s no reason for data caps. We want to make the internet unmetered. Period. The capped model is antiquated: we want to make it about speed.”

The unmetered arrangement allows Optus and iiNet customers to stream as much Netflix as they like, without it being added to their bill.

Vodaphone, Telstra and TPG customers looking to sign-up to watch shows like House of Cards and Orange Is The New Black will be forced to watch only what their plan allows.

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