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Netflix has admitted that it has been slowing video content for some customers.

According to a company blog post, the streaming media giant has been throttling video content on Verizon and AT&T networks in the U.S. without their knowledge.

Netflix claimed that it reduced the resolution to protect users from exceeding their data caps on the two wireless networks. The Wall Street Journal reports that Netflix has reduced video streaming speeds for consumers on most wireless carriers around the world and has been doing so for more than five years.

The company also said it has not enacted this policy for Sprint and T-Mobile customers because those carriers have more "consumer-friendly policies." Those two wireless carriers already slow down network speeds when consumers go over their data caps, while Verizon and AT&T penalize their customers with aggressive overage charges.

This news surfaced after Verizon and AT&T investigated the claims of T-Mobile CEO John Legere that T-Mobile customers could stream Netflix content at a higher resolution than Verizon and AT&T customers.

Netflix's revelation highlights the issues that the mobile industry would likely face as mobile data consumption continues to increase. Carriers are facing more demand and stress on their networks, which would be costly to expand.

But slower network speeds would not sit well with consumers, who have access to so many discounts from different wireless carriers. As a result, slow streaming speeds could cause a customer to jump ship.

And much of this data consumption is due to mobile video streaming. In 2015, mobile video traffic accounted for 55% of all mobile data traffic, according to Cisco.

Wireless carriers, therefore, must find a balance between quality video streaming and unmanageable data costs. One solution could be data-quality controls within mobile apps. Netflix said in its blog post that it intends to debut a data-saver option for users in May that would give users the option to reduce their streaming quality in order to conserve data.

This situation will bear watching in the next several months as wireless carriers continue to compete for their customers' loyalty in a wireless industry that is in a state of flux for numerous reasons. AT&T and Verizon have dominated the carrier market over the past seven years while T-Mobile and Sprint have struggled to gain subscribers. Then in 2013, T-Mobile tweaked its strategy to turn around its business.

This move, along with slowing smartphone adoption and other forces in the mobile industry, killed the two-year contract and initiated an ongoing price war between carriers. The movement away from the contract model is not only changing the way carriers operate, it’s affecting the myriad of industries that rely on carriers’ services.

Will McKitterick, senior research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on wireless carriers that examines how the wireless industry has fundamentally changed since carriers began aggressively responding to the launch of T-Mobile’s “Un-Carrier” movement. It also looks at the factors underpinning changes in the broader wireless industry and the challenges carriers face in 2016 and beyond, including the upcoming spectrum auction and the deployment of new wireless technologies.

BI Intelligence

Here are some key takeaways from the report:

Consumers are actually becoming more loyal to their current wireless operator even as competition between the carriers intensifies.

The wireless carriers are not only battling over device financing, they’re also trying to woo consumers through attractive data packages.

Intensified competition between carriers has lengthened the smartphone replacement cycle, posing a challenge for mobile software developers and handset makers.

With phone subscriber growth stagnating, carriers will look to alternative sources of revenue, including connected cars, tablets, and IoT devices, to drive growth.

The upcoming spectrum auction, the latest ruling on net neutrality, and new technology, will change the face of the broader wireless industry in next few years.

In full, the report:

Examines the impact of T-Mobile’s Un-Carrier movement on the wireless industry.

Forecasts how the death of the two-year contract will impact the broader mobile industry.

Identifies how carriers are helping facilitate the growth of mobile video consumption.

Explains the changing nature of subscriptions and the growing importance of connected devices.

Discusses what changes and challenges the wireless industry will face over the next five years.

To get your copy of this invaluable guide, choose one of these options:

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The choice is yours. But however you decide to acquire this report, you’ve given yourself a powerful advantage in your understanding of the wireless carrier war.