Netflix, Inc. (NFLX) Changes Its Approach For Better Streaming


After four years of rethinking, Netflix, Inc. (NASDAQ:NFLX) believes that the time has come to change the way it has been rolling out its services, be it TV shows or the movies, to its customers. The company is confident that its new process of roll-outs would reduce data by as much as 20%. However, the streaming service provider believes that it would not result in degradation of the quality of the picture, and  viewers would not notice any negative changes. On the other hand, content would look better than what it looks currently. A win-win situation.

Blanket Rules across the Catalog

Netflix, Inc. (NASDAQ:NFLX)’s encoding process would enable the viewers to adjust the level of quality based on the streaming content rather than blanket rules in the entire catalog system that is in vogue now. Therefore, the company’s servers would dish out a number of streams for an animated show such as My Little Pony compared to the films such as ‘The Hurt Locker’.

The streaming service provider thinks that it can use less bandwidth to stream visual fidelity like Hollywood blockbusters and that animated content requires the same level only rarely. Therefore, they would still be in 1080p. However, Netflix, Inc. (NASDAQ:NFLX) is taking away about 1.5 Mbps bitrate. Also, that allowed more people to watch movies and animated shows in full HD, as the company was trying to deliver at 5.8 Mbps bit rate all the contents. There is every possibility that weak internet connections could interrupted the viewing of the stream quality to 720p.

Optimizing Other Content

The streaming company also indicated that it was maximizing the other content looks as it performed the same video on two TVs simultaneously. It was followed by employees figuring out the maximum quality of the content, i.e. 5.8 Mbps or the new 4.64 Mbps version, which provides 20% savings in bandwidth.

Netflix, Inc. (NASDAQ:NFLX)’s fresh system might offer a different encoding settings for every individual episode of the TV series. The company would have to recode the complete catalog for higher efficiency in streaming.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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