Netflix Admits To Throttling Its Own Streams On AT&T, Verizon Wireless Because Data Caps [View all]
for the the last five years, Netflix has been capping their own mobile data streams at 600 Kbps on most wireless networks around the world.
The reasoning? If you hit your data cap and get socked with overage fees you wont be watching any more Netflix this month and you might cut back in future months, too. Therefore, in the interest of keeping customers watching and subscribing, they throttled the streams.
But wait: Netflix admitted to doing it for Verizon and AT&T customers, but not for T-Mobile or Sprint. Why not? Because historically those two companies have had more consumer-friendly policies, Netflix told the WSJ. Specifically, they mean the practice of throttling down data instead of charging overage fees. Watching too much Netflix in one week might mean you cant for the next three weeks, but it wont make you broke. And consumers are very sensitive to hits in the wallet region.
https://consumerist.com/2016/03/25/netflix-admits-to-throttling-its-own-streams-on-att-verizon-wireless-because-data-caps/