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Netflix ready to take on internet companies

Posted at 5:18 PM, Sep 14, 2016
and last updated 2016-09-14 20:18:38-04

In an attempt to prevent internet companies from limiting the amount of data used by consumers, Netflix filed a comment with the Federal Communications Commission last week stating it would harm telecommunication advancement. 

Part of the reason why internet bandwidth is capped is because a number of cable companies also distribute internet service. With more people opting to use internet video services such as Netflix and Hulu for content, companies that provide both cable and internet services are trying to prevent people from cutting the cord.

"Watching television shows and movies on the internet is no longer a novelty," Netflix said in its letter to the FCC. "Consumers increasingly expect more from their broadband connection, and they expect that broadband internet will deliver a television experience that is the same or better than what they receive from their cable service, satellite provider, or local broadcaster."

Netflix claims that consumers need at least 300 GB a month in order to consume video content. 

Many internet companies have had a monthly 300 GB limit on data, but some are increasing those limits. Before the advent of streaming HD video, using 300 GB of data was nearly unheard of. But services such as Netflix are causing Americans to use a lot more data than in previous years. 

And going over on data could cost consumers a lot in overages. For instance, each 50GB overage at AT&T costs $10. 

"A data cap or allotment of 300 GB of data per month or higher is required just to meet the internet television needs of an average American," Netflix's letter says." This does not account for the other things that consumers typically do with their broadband connections, such as webbrowsing or downloading games or apps from the internet."

According to Netflix figures, HD video could use up to 3 GB of data per hour. That means 100 hours of HD viewing would being to exceed a 300 GB data cap.