March 20, 2020 / 7:03 AM / in 9 days

YouTube, Amazon Prime forgo streaming quality to relieve European networks

BRUSSELS (Reuters) - YouTube and Amazon Prime will sacrifice streaming quality in the EU to help avert internet gridlock as tens of millions of Europeans, confined by the coronavirus outbreak, switch to working from home.

Alphabet Inc’s (GOOGL.O) YouTube and Amazon (AMZN.O) joined Netflix (NFLX.O) in responding to a call by European Union industry chief Thierry Breton to cut picture quality to prevent overload.

While mobile networks are coping so far they could come under increased pressure as lockdowns to slow the pandemic become stricter and broader.

Streaming video can account for 60% or more of traffic on fixed and mobile networks and the planned March 24 launch of Disney+ (DIS.N) in Britain, Ireland, France, Germany, Italy, Spain, Austria and Switzerland could create a new pain point.

Carriers have been told by the EU not to prioritise traffic as this would violate its net neutrality rules.

“We are making a commitment to temporarily switch all traffic in the EU to standard definition by default,” YouTube said in a statement after Breton spoke to Alphabet CEO Sundar Pichai and YouTube CEO Susan Wojcicki.

A spokesman said the decision includes Britain, which is leaving the EU, and will initially be for 30 days. Breton welcomed YouTube’s step.

Amazon Prime followed suit on Friday, saying it supported the need for careful management of telecom services to ensure they can handle the increased internet demand with so many people now at home full-time due to COVID-19.

“Prime Video is working with local authorities and Internet Service Providers where needed to help mitigate any network congestion, including in Europe where we’ve already begun the effort to reduce streaming bitrates whilst maintaining a quality streaming experience for our customers,” a spokesperson said.

Disney, which has 28.6 million users, had no immediate comment. It is already sending out teasers for a launch that will feature the opening two episodes of ‘The Mandalorian’ and the final season of ‘Star Wars: The Clone Wars’.

Experts warn that reducing streaming rates may only give temporary relief and the dilemma of whether to discriminate between essential and non-essential traffic will resurface.

“In an ideal world, network operators would obviously upgrade their infrastructure and invest,” said Eric Broockman, chief technology officer of Extreme Networks (EXTR.O), a U.S. network management company.

“In the short term, what network operators could do to reduce the pressure on their networks and ensure connectivity for all is to deprioritise non-essential traffic.”

DATA SPIKE

Telecoms providers from Vodafone (VOD.L) to Deutsche Telekom (DTEGn.DE) have reported a spike in data traffic, forcing Breton to issue his pre-emptive call.

He wants networks to be able to run essential services such as healthcare and online learning for house-bound children during the coronavirus outbreak.

Netflix said it would reduce bit rates, which determine the quality and size of its audio and video files, across all its streams in Europe for 30 days, in effect cutting its traffic on European networks by around 25%.

Orange (ORAN.PA) CEO Stephane Richard called in an interview with Le Figaro for the Disney+ launch in France to be delayed so as not to overload networks.

But Deutsche Telekom said it was sticking to its launch plans in Germany, where it is offering Disney+ for free to subscribers to its Magenta TV product for the first six months.

In Austria, which has imposed regional lockdowns in areas hardest hit by the coronavirus, Drei Austria said it was seeing a 50% increase in voice telephony and 15% in peak data loads.

FILE PHOTO: The YouTube app logo is seen on a smartphone in this picture illustration taken September 15, 2017. REUTERS/Dado Ruvic

Drei, a unit of Hutchison (0001.HK), welcomed the moves by Netflix and YouTube. While it had not yet made use of traffic management measures, it said it would keep that option open.

“We hope that Disney, like Netflix & YouTube, will also reduce its transmission quality, at least during the crisis,” Drei told Reuters.

Not all networks are stretched, with Dutch cable operator VodafoneZiggo saying it had ample capacity and was offering its paid film channel, plus a kids film and a comedy channel, for free.

Additional reporting by Sarah White, Kirsti Knolle, Nadine Schimroszik and Toby Sterling; Writing by Douglas Busvine; Editing by Alex Smith and Louise Heavens

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