Netflix has become the first client of a new, ambitious startup that promises to offer streaming video content with a significantly reduced bandwidth requirement. In fact, eyeIO says it will cut the amount of bandwidth needed by Netflix streams by more than 50%. With this, the company could potentially further expand its scope on an international level.
This could also help with cable broadband customers who are capped on the amount of bandwidth they are allowed to use in a given month. In fact, in Canada, where Netflix streaming is still just beginning to blossom, there are providers that limit users to as low as 2 GB per month, which is hardly enough to stream anything. But if Netflix could reduce the strain by more than 50%, it is pretty much the definition of win-win.
Apparently Latin America is the next international market that Netflix is eyeing, and this partnership will go a long way in making that work. In addition, this can really help ease the strain on mobile users who watch Netflix on a smartphone or tablet and must watch their data usage carefully. Right now this is very much in a testing phase but it could grow into a very significant change for all Netflix users.