Australian ISPs could allocate more bandwidth to Netflix and other major customers, despite concerns about net neutrality.

Net neutrality is a principle that says all traffic, regardless of origin, should be treated equally by network providers and ISPS, creating a level playing field across the internet.

But with the launch of Netflix making a big mark on Australia's fixed networks, local providers are looking for ways to manage the strain.

One of Australia’s largest internet providers, iiNet, says that 25 per cent of its network traffic is now coming from Netflix.

Netflix struck deals with local ISPs including iiNet and Optus to allow unmetered streaming for its customers.

But Netflix CEO Reed Hastings says he regrets making this deal, as the company does not support capped internet, and he feels that the deal effectively condones “discrimination among video services”.

It now appears the local firms could take that “discrimination” even further.

Optus CEO Allen Lew says the company is considering creating a “premium” service to ensure that HD streaming video gets priority.

“To ensure the best customer experience that is cheap for the user, we need to ensure that the OTT [over-the-top] providers - whether they are Netflix or others - understand that to preserve the network quality and to give you a HD video in the home, they need to work collaboratively with us,” he said in April.

Speaking to tech news outlet ZDNet last week, Lew said he wanted the content providers to have more choice about what they offer to their customers.

“It's a bilateral discussion with different content providers, and what their brand positioning, and what sort of service levels they want to give to their end users,” he said.

“We believe it is an opportunity for content providers who want to use our network, and want to ensure at the end of the day, end-to-end service is to the expectations of what they think their content can provide.

“Content providers moving to 4K need to have some minimum bandwidth requirements to deliver that to someone's 4K TV. That's an opportunity for a company that focuses on customer experience like us, and that content provider to work more closely together.”