Telstra and Netflix - Speed Index Position

Question

Recently, Netflix Australia released some results around speed tests conducted on Australian ISP networks. This snapshot is a measure of prime time performance for Netflix on each particular ISP. 
These results do show that we are delivering a more than reasonable video experience during these peak viewing times, providing over 2Mbps on average across a vast and extensive network area. The factors that can influence this national average include the larger size of the Telstra network over a wider ADSL footprint and customer base. This means that we do service a greater number of customers who are further away from exchanges. 
Most importantly, our customers are telling us how we are performing and so far they are telling us that they are able to enjoy the full range of services that we run over our networks, including streaming video. 
Are the Netflix results indicative of the general streaming experience your customers can expect?
The Netflix results provide an averaged snapshot of the streaming speeds achieved by customers right across our network footprint on their content during their busiest streaming periods.
There are many factors which affect performance including network configuration, the number of people using a connection and a customer’s equipment and software. It is important to note that the speeds indicated (>2Mbps) are more than sufficient for acceptable viewing experiences on large screen televisions.
We know that our network is more than capable of offering most customers a great streaming experience. For instance, our HFC cable broadband product is rated “HD” quality by the Google Video Index.
Are you throttling Netflix?
No we are not throttling Netflix.
You say you have superior networks, does that mean all Telstra customers will be able to use streaming services and enjoy a great experience?
No. Streaming services rely on the broadband connection and due to the large and diverse coverage of our networks some services will receive very high speeds when running on our Cable, Optical and some ADSL networks that are closer to the exchange, whilst others may be located in more remote areas or more distant from the exchange which limits the available speed to these customers.
For those customers in areas where speeds are limited most video streaming services are able to adjust the video to a lower rate and still deliver an acceptable video experience.
Why don’t you upgrade your networks now so everyone can enjoy streaming?
Whilst we continue to invest in our network some areas are set to transition to NBN and are not suited to changes ahead of that transition. Under NBN the architecture of the network will involve shorter copper lengths which will deliver speeds more suitable for video streaming and other high bandwidth activities.

Answer 1

Kalak wrote:
It's not a copout.
Can you watch Netflix using T-Box? No.
Can you watch Netflix on FetchTV from competitors? Yes.
So the default box that Telstra customers tend to have doesn't support Netflix, so of course they are going to watch it via other means. They are also more likely to be less-savvy customers, meaning they won't use more complex setups to access the content.
If Telstra's box doesn't provide a way to watch Netflix then I'm not sure how that helps your case. "Their speed is bad but it's only because their box is bad too!". Also, "default box that Telstra customers tend to have" seems like a big assumption to me. How many have they actually shipped? Not very many I'm willing to bet. Don't the vast majority of Netflix users watch via desktop computer/tablet/smartphone? Kalak wrote:
In addition to this who do you think is the primary provider in rural and regional areas? Areas that tend to have less backhaul and longer average line lengths to the exchange resulting in slower overall average sync speeds across a customer base? That's right, Telstra.Rural and regional areas where very few people live, you mean? If you are seriously arguing that the small number of people in these areas are moving the needle so much that the purported market leader suddenly, and totally understandably, ends up coming in dead last each month, then there might be no limit to what you can defend. Kudos.