Netflix Accounts for 15% of Australia ISP iiNet’s Traffic

In its first two days of operation in Australia and New Zealand, Netflix video accounted for 15% of traffic on Australia-based ISP, iiNet. iiNet is the country’s second largest ISP, with 1.3 million subscribers.

Netflix struck deals with ISPs iiNet and Optus to allow users to stream Netflix video unmetered. Netflix CEO Reed Hastings recently told Gizmodo in Australia that his company is opposed to data caps for broadband packages.

“There’s no reason for data caps. We want to make the Internet unmetered. Period,” he said. “The capped model is antiquated: we want to make it about speed. 10 Mbps will cost more than 1 Mbps and 50 Mbps will cost more than 10 Mbps and that makes sense.”



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Those deals, coupled with the high interest in the service as it launched, has led to Internet traffic headaches, as reports of congestion flooded the “Twittersphere” after Netflix launched. Netflix is also now available on Fetch TV set-top boxes, the first pay TV partner for Netflix in the new markets. Fetch TV has over 170,000 subscribers.

Viewers in Australia and New Zealand have been accessing Netflix illegally for quite some time, using VPNs to get around geo-blocking. In the same interview, Hastings said an easy way to eradicate VPN piracy is by acquiring global rights to content. That ensures that everywhere a service like Netflix is available, the content is the same. Netflix has recently begun acquiring …

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