Netflix does not want to pay European internet service providers for rising traffic costs

With the emergence of the streaming video industry, the proportion of network traffic occupied by streaming video is increasing. This has led to a rather comical scene where some internet service providers are demanding that streaming service providers pay for network upgrades.

For instance, in Europe, numerous service providers have proposed to the European Union that entertainment companies be subject to additional taxation in order to subsidize network infrastructure upgrades for the service providers.

The service providers claim that online video accounts for 65% of all network traffic and that upgrading network infrastructure to provide consumers with a smooth network experience requires the construction of high-bandwidth backbone networks.

Netflix opposes internet service providers’ attempts to levy additional charges on streaming video providers in the name of compensation.

This is not the first time European service providers have demanded that streaming video providers pay additional fees. Currently, European regulatory agencies are conducting exploratory consultations to assess service providers’ demands.

Netflix claims to have invested a tremendous amount of money in building its own network to reduce the amount of traffic sent to traditional service provider networks. Netflix has established its own CDN network, with 6,000 nodes worldwide, and users who watch Netflix videos are already paying for the network.

Currently, the European Commission has issued a survey to solicit public opinion on whether online platforms should pay for service provider broadband network upgrades and additional fees.

Via: elpais