Netflix Taking Over the Web
Americans love to be entertained, and growing numbers are
going online in search of action, comedy and drama. In fact, according to a
new report, nearly 30 percent of peak traffic on the internet is going to Netflix.
which has provided analysis of traffic on the web since 2002 with its Global
Internet Phenomena Report, found that consumers’ desire for
on-demand entertainment has grown from 29.5 percent of peak traffic to just
over 49 percent today. It predicts that number could go as high as 60 percent
Netflix, according to the report, is grabbing the biggest share of traffic,
at 29.7 percent of the total. In all, Netflix and other sites, including YouTube,
are responsible for about 46 percent of all downloads during peak online hours.
“The dramatic growth of Netflix and its impending global expansion are
prime examples of a growing appetite for real-time entertainment,” said
Dave Caputo, president and CEO, Sandvine, in a press release. “It is
also important for fixed and mobile broadband providers to have real-time policy
control capability, made possible by insightful business intelligence, in order
to put sound strategic decisions into action.”
The growth of movie and
television show downloads is causing cable and telecom providers to reassess
their go-to-market product and pricing strategies.
“My sense is something will have to give. If they are using more bandwidth,
the question is, who is going to pay for it?” Jeffrey Silva, an analyst
at Medley Global Advisors, told The Washington Post.
Ultimately, it seems reasonable
to assume, it will be the consumer who foots the bill.
- Trends – Sandvine
- Video viewing on Netflix accounts for up to 30 percent of online traffic –
The Washington Post
- Netflix Gobbles 29.7 Percent of Peak Downstream Traffic in North America – DailyTech
Discussion Questions: What does the growing demand for entertainment on the internet mean for retailers and brands from a marketing perspective? Do you expect Netflix to continue dominating marketshare in this area for long? What are the implications for business operations with so much more of the available bandwidth being used for entertainment purposes?