New Tech Partner Promises To Cut Netflix Streaming Bandwidth In Half

Netflix is hoping a new tech partner will help make its streaming more efficient to satisfy new bandwidth caps from internet service providers that come with potential financial penalties.

The movie and TV show streaming company is the first client of Palo Alto-based start-up eyeIO, a maker of a video encoding system it claims reduces the bandwidth needs of Netflix streams by more than 50 percent without sacrificing picture and sound quality. The issue of bandwidth availability is one of Netflix’s most pressing concerns as it moves away from DVD rentals and seeks to expand its streaming service globally.