Netflix is in the process of re-encoding its entire video library thanks to new bandwidth-saving technology that promises to use less data, while simultaneously improving video quality.

Speaking to Variety, Netflix engineers described how its new compression algorithm no longer treats every show the same way. For instance, animated series like Bojack Horseman and My Little Pony will be treated differently from other TV shows like Orange is the New Black and House of Cards.

The reason behind this change is that many people watching Netflix content on slow Internet connections were being delivered low-quality content as a result – no matter what they are watching.

Those being served the file encoded with a bitrate of 235 kbps were seeing a resolution of 320 x 240, which would make more sense on a show like House of Cards, where heavy compression would be evident, but not on shows like Bojack Horseman, where it’s harder to distinguish between heavily compressed content and normal content.

That means from now on, viewers on slow Internet connections should begin receiving a higher resolution version of the show than they previously did, as the file will be more heavily compressed.

“A one-size-fits-all model doesn’t give you the most optimal quality,” Anne Aaron, Netflix’s video algorithms manager told Variety.

The result of the team of engineer’s work is that Netflix can now stream a 1080p version of My Little Pony with a bitrate of just 1.5Mbps, as opposed to the previously required 3.8Mbps. With the old system Netflix users would have used more data, despite being served a 480p file.

Even on live action shows, like Orange is the New Black, Netflix showed off how its new algorithm could make 20% in bandwidth savings, while retaining the same 1080p quality content.

It has taken since 2011 for Netflix to reach this stage and the company is not yet done with its work.

While different genres of TV shows can be compressed differently without a degradation in quality, the Netflix team still sees that solution as a one-size fits all.

“Each episode could be very different,” admits Anne, hinting at a future where Netflix could adapt its compression algorithm on an episode by episode basis, or even a scene by scene basis.

Earlier this month Netflix transferred the first batch of videos encoded with the new algorithm, with thousands set to join them in time for the Christmas season. The process is scheduled for completion by the end of Q1 2016.

Netflix already accounts for 37% of all Internet traffic in the United States, meaning this bandwidth-busting endeavour could save customers and ISPs serious amounts of data.

After the algorithm update, Netflix will turn its attention to other areas of its business. That includes improving the image quality of 4K content, including HDR and higher frame rates. It won’t be long until the company is back to re-encoding its content all over again however, when the episode-by-episode algorithm is finally ready.

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