The Netflix Effect

The Netflix Effect

How is Netflix disrupting broadband?

Netflix has created a demand in South Korea for more network capacity. SK Broadband has had to double its capacity because of Netflix. The operators are boosting the data transfer speed for high-speed networks from 50gbps to 100gbps. In addition, they will be doubling their overseas networks too.

South Korea is a tech hub. So, it’s no surprise that they have fast broadband speeds. With Netflix putting huge amounts of strain on networks its no wonder countries are having to upgrade their networks sooner than they thought. However, after the neutrality debate “operators argued bandwidth-intensive services like Netflix should pay extra for ‘fast lanes’ to help fund infrastructure upgrades. Services[sic] were concerned their content would be restricted in favor of rivals, while consumers feared operators would charge for unrestricted access to certain services.” Time will tell if changes occur and for how long.

SK Broadband announced earlier this month that they will partner with the country’s three terrestrial broadcasters to provide a local online video content service.

Here are Netflix’s stable internet download speed recommendations per stream for playing TV shows and movies:
• 0.5 Megabits per second – Required broadband connection speed
• 1.5 Megabits per second – Recommended broadband connection speed
• 3.0 Megabits per second – Recommended for SD quality
• 5.0 Megabits per second – Recommended for HD quality
• 25 Megabits per second – Recommended for Ultra HD quality
There are estimated to be almost one million active Netflix subscribers in Korea.

If you need assistance finding terrestrial broadband for your company, contact GeoTel for a free demo.

Valerie Stephen
valeriestephen@geo-tel.com