The age of internet video is upon us, according to a case study about Netflix carried out by Sandvine. “Subscribers have clearly embraced the Netflix streaming service, fundamentally altering the internet landscape. Furthermore, the success of Netflix’ expansion into Canada suggests that it is not a phenomenon localised to the US.”
Just a few weeks ago, Sandive released recent figures about Netflix traffic in the US, representing 29.7% of peak downstream traffic and having become the largest source of internet traffic overall.
Seven months earlier, according to Sandvine, Netflix accounted for around 20% of all US peak downstream traffic – which shows an amazing 50% increase over the period. During that period, Netflix added 6.7 million subscribers, bringing the total to more than 23 million members in the United States and Canada.
These data show that by providing a robust, easy to use VOD service offering a wide variety of programming at an affordable price ($7.99 or €5.43) can be successful. The question now is: will Netflix-type of service hurt the sale of physical content carriers – already under prerssure – or VOD services from IPTV and cable platforms?