Netflix and Youtube agreed to reduce the video quality on its service in Europe for 30 days so as to reduce the load on internet service providers.
This was done to avoid straining the internet as thousands of Europeans, constrained by the coronavirus outbreak, switch to teleworking and watch videos at home.
Netflix’s decision to reduce video bitrate by a quarter appears to be a compromise.
The video-streaming provider said lowering the picture quality would reduce Netflix data consumption by 25%.
But it said viewers would still find the picture quality good.
“Following the discussions between Commissioner Thierry Breton and [Netflix chief executive] Reed Hastings, and given the extraordinary challenges raised by the coronavirus, Netflix has decided to begin reducing bitrates across all our streams in Europe for 30 days,” the company said.
Demand for streaming has increased because large parts of Europe are self-isolating at home due to the coronavirus outbreak.
The company will cut its streaming bitrates, which influence how clear and smooth videos look when streamed online.
Videos with a higher bitrate tend to look less “blocky” or pixelated, but use more data.
The announcement came after a phone call with European officials.
Thierry Breton, the European Commissioner for the Internal Market, had earlier said people should “switch to standard definition when HD [high-definition] is not necessary”.
He praised the “very prompt action” Netflix took just hours after the phone call, saying it would “preserve the smooth functioning of the internet during the Covid-19 crisis”.
An hour of standard definition video uses about 1GB of data, while HD can use up to 3GB an hour.
Netflix also offers ultra-high definition 4K video for some of its programmes.