Netflix loses 4K streaming patent in Germany

A court in Munich, Germany, last month handed down a ruling against Netflix that could affect customers’ service experience in a long-running dispute between the streaming giant and tech company Broadcom.

The court said Netflix is ​​illegally using Broadcom’s patents related to video coding, which means Netflix can no longer use that technology to stream 4K video in Germany.

The two companies have been in disagreement over this patent since 2018. According to the release, Broadcom accused Netflix of infringing multiple patents in the United States, Germany, and the Netherlands through the provision of its video streaming services.

“Netflix has built a strong video streaming business that relies on Broadcom’s patented technology to deliver content to its users, and Broadcom is pleased that this has been recognized by the German courts.” said Mark Terrano, Broadcom’s vice president and general manager of intellectual property and licensing. the department said in a statement.

Netflix declined to comment.

Netflix stock was reportedly “unfazed” by the injunction, but the side effects could worsen if it faces further cease and desist orders. The streaming service wars have companies looking for ways to stand out from the competition. The lack of 4K streaming could make or break Netflix for some subscribers.

Additionally, streaming services are struggling to balance profitability and subscriber retention amid rising inflation. Streaming services are seen as a cheaper alternative to cable, but more platforms are raising prices and users are reevaluating how many services they need. According to data from Parks Associates, more households report using free, ad-supported services by the end of 2022, with content and price being drivers of adoption.