The company has upgraded its app for providing higher quality streaming to the customers
On Thursday, Netflix Inc. has added a new feature to its mobile applications that let the subscribers to regulate how much data has been consumed by the streaming of the videos of the company run over cellular networks.
In March, The Wall Street Journal put forward a report alleging the company for lowering its stream quality, unilaterally to the customers of few mobile carriers including Verizon Communications Inc. and AT&T Inc., afterwards the company took some heat.
Netflix announced that the only reason for the limitation –of 600 kilobits-per-second –it has put on the picture quality is to stop the consumers from exceeding their mobile data limit. The restriction had been far less than what is possibly compatible on 3G or 4G networks. AT&T, however is annoyed with the company’s practice and it said that Netflix’s stream regulation was without customers’ “knowledge or consent.”
Now, the updated app offers default streaming speed of around 600 kbps for all users. The speed will let the consumers to stream around three hours of video per gigabyte of data, according to the company. Netflix said that speed “balances good video quality with lower data usage to help avoid exceeding data caps and incurring overage fees.”
For the customers, who have been using unlimited plans or higher data caps, the upgraded feature lets them to transition to higher-quality streams. Moreover, the new features include a warning sign which reads: “not suggested without an unlimited plan” which basically warns the user beforehand of the mobile data’s susceptibility. Additionally, the apps settings can be put only to let it run on Wi-Fi networks.
The $38 billion company cited that its goal is to “give [the consumers] more control and greater choice in managing [theirs] data usage whether [they’re] on an unlimited mobile plan or one that’s more restrictive.”
The Los Gatos, Calif. firm has to play strategically and smartly and try not to lose its existing subscribers. Recently, the company’s stock fell 12% after it posted weaker than expected subscriber growth guidance. According to the earlier anticipations of the company, the subscribers are expected to grow by 200 million globally and 500,000 exclusively in the U.S. On the contrary, according to FactSet, the analysts had been anticipating users growth of approximately 3.5million internationally and around 600,000 in the U.S. The company’s guidance has implied a miss of 43% on international subscribers and 17% on U.S. subscriber numbers.
Therefore, it is essential for the company to fight the critical challenges it faces in the international growth. As at the market which closed on Thursday, Netflix Inc. stock stood at a price of $89.37. The 52 week range of the stock is $79 to $133.