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NBN denies angling for a Netflix tax

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“It is a significant part of current internet traffic volume, which is only forecast to increase,” the statement said.

The NBN Co has sought feedback from telcos about how to provide these services “in the future” and while the concept of additional costs for streaming is in the paper the NBN Co said the review was “not angled” at a Netflix tax.

“Our context for posing this question is the fact that NBN Co has introduced a number of discounts in recent years in response to increases in usage demand,” the statement said.

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“We are not working towards any pre-defined ideas, and the process is not about levying additional charges on customers.

“We are simply seeking input from industry on whether they believe video streaming is an area that requires attention and, if so, we are open to possible ideas they may wish to suggest.”

This idea was one of 50 suggested by the NBN Co in an industry consultation paper released in June as part of a wide-ranging review on pricing.

The NBN Co is a wholesaler to telcos like Optus and Telstra, which then sell broadband connections to consumers, and this could allow the business to make more money out of video.

Streaming services for movies and television series have become hugely popular in recent years with video downloads more than tripling in the last four years. This includes services like US-based Netflix and Nine Entertainment Co’s Stan. (Nine is the owner of this masthead.)

Industry feedback on the consultation is due by the end of July.

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