Indonesia’s largest telco slams Netflix, calls it arrogant

CEO Reed Hastings onstage at CES 2016. Photo credit: Netflix.

It’s not looking good for Netflix fans hoping to one day be able to access it via Indonesia’s largest internet service provider, Telkom.

The video streaming service from the US is still blocked by Telkom – both on its mobile network and fixed lines. Even Netflix boss Reed Hasting’s recent visit to Indonesia couldn’t change that. If anything, it made it worse.

Why Telkom blocked Netflix

Telkom’s decision to block Netflix came about in January, soon after it launched in the country. The official reasons given were concerns about pornographic content on the streaming site and lack of licenses to operate in the country.

In some critics’ view, Telkom’s main reason was to protect its business interests. It has its own on-demand video plans: a TV-over-the-internet portal and a collaboration with Netflix competitor, iFlix. Most of all, it wasn’t willing to carry the cost of the high data volumes it would funnel through its networks once customers regularly stream Netflix videos – if it’s not tied in through a partnership scheme.

No apologies

Reed appeared at the Asia-Pacific Pay-TV operators summit in Bali at the end of last month. But he reportedly wasn’t there to make amends.

Instead, he took the opportunity to say on stage that he hoped it was “only a matter of time” until the Telkom’s ban is lifted, and that he firmly believes “consumers should be given the choice over which streaming service they want to subscribe to.”

This did not sit well with Telkom.

Dian Rachmawan, Telkom’s director of customer services, told Kompas how the company felt about the Netflix CEO’s statement. “Why did he speak impolitely and arrogantly? He makes a statement in someone’s house only to pit us against each other.”

Dian Rachmawan at a Telkom event. Photo credit: BUMN track.

Rachmawan also questioned Netflix’s commitment to adapt its content to local preferences.

“Netflix is only blabbering about improving their local content, it’s just doing that to raise sympathy,” he said.

After this spat, it’s unlikely Netflix and Telkom will come to an agreement soon. Fans of the US service will have to switch networks or make do with iFlix. The startup from Malaysia comes out as the winner in this argument.