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Netflix Gobbles 29.7 Percent of Peak Downstream Traffic in North America
Daily Tech ^ | May 18, 2011 | Tiffany Kaiser

Posted on 05/18/2011 5:15:26 AM PDT by decimon

Internet trends report predicts that real-time entertainment applications will account for 55 to 60 percent of peak aggregate traffic by the end of this year

A study of internet trends conducted by Sandvine has revealed that North American web users have become increasingly interested in on-demand applications like Netflix, and this enthusiasm for real-time entertainment categories will likely continue to grow.

Sandvine is a provider of intelligent broadband network solutions for fixed and mobile operators. It releases a Global Internet Phenomena Report annually, and has done so since 2002. These reports analyze internet phenomena and traffic on the web in North America, Latin America and Europe.

In the Global Internet Phenomena Report: Spring 2011, Sandvine found that Netflix is now 29.7 percent of peak downstream traffic in North America, and has become "the largest source of internet traffic overall."

In 2009, real-time entertainment applications consumed 29.5 percent of peak aggregate traffic, and today, that number has increased to 49.2 percent. According to Sandvine's predictions, this category will account for 55 to 60 percent of peak aggregate traffic by the end of this year.

(Excerpt) Read more at dailytech.com ...


TOPICS: Business/Economy; Computers/Internet; TV/Movies
KEYWORDS: netflix

1 posted on 05/18/2011 5:15:28 AM PDT by decimon
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To: ShadowAce

Ping


2 posted on 05/18/2011 5:16:00 AM PDT by decimon
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To: rdb3; Calvinist_Dark_Lord; GodGunsandGuts; CyberCowboy777; Salo; Bobsat; JosephW; ...

3 posted on 05/18/2011 5:23:04 AM PDT by ShadowAce (Linux -- The Ultimate Windows Service Pack)
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Comment #4 Removed by Moderator

To: decimon

Give me a reduced rate and I’ll download my movies in non peak hours.

I have no time to watch movies anymore anyway. I’m busy watching my government.


5 posted on 05/18/2011 5:27:49 AM PDT by listenhillary (Social Justice is the epitome of injustice.)
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To: listenhillary

“Give me a reduced rate and I’ll download my movies in non peak hours.”

Nah, they’ll just cut you off after 50GB/month, and let NetFlix worry about it. That’s NetFlix’s weak point, they don’t control delivery.


6 posted on 05/18/2011 5:39:25 AM PDT by mewykwistmas (Lost your job as a birther under Obama? Become a 'deather'! Where's Bin Laden's death certificate?)
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To: decimon

In my house we can have two different Netflix movies downloading and someone browsing the web at the same time. Netflix is a great invention.


7 posted on 05/18/2011 5:45:20 AM PDT by Sawdring
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To: decimon

And now all of the ISPs are implementing bandwidth caps. Thanks for nothing, Netflix.


8 posted on 05/18/2011 5:46:18 AM PDT by Oshkalaboomboom
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To: decimon

sfl


9 posted on 05/18/2011 5:49:53 AM PDT by phockthis
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To: decimon

IMO, wild overestimate. People don’t watch movies that often.


10 posted on 05/18/2011 5:50:04 AM PDT by bvw
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To: mewykwistmas

You set me off on a search of who owns the delivery systems.

http://computer.howstuffworks.com/internet/basics/who-owns-internet1.htm

Today, several large corporations provide the routers and cable that make up the Internet backbone. These companies are upstream Internet Service Providers (ISPs). That means that anyone who wants to access the Internet must ultimately work with these companies, which include:

UUNET
Level 3
Verizon
AT&T
Qwest
Sprint
IBM


11 posted on 05/18/2011 5:50:04 AM PDT by listenhillary (Social Justice is the epitome of injustice.)
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To: decimon
Netflix Gobbles 29.7 Percent of Peak Downstream Traffic in North America

That is because much of cable TV is LOUSY!

I {heart} Netflix. Best $16/month I have spent for TV/entertainment. I watch twice as much Netflix streaming as I watch regular TV, and Netflix has NO COMMERCIALS.
12 posted on 05/18/2011 5:50:25 AM PDT by TomGuy
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To: TomGuy

I watch Netflix too. On my laptop or on the TV. Going on 2 years since I cancelled tv service. I pay 10.99 a month. Thinking of going down to 8.99 since I rarely rent any dvds anyway.


13 posted on 05/18/2011 6:00:12 AM PDT by Huck (The Antifederalists were right.)
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To: listenhillary

You forgot Comcast (owner of NBC) and Time Warner that own quite a bit of content and can kill netFlix by imposing caps. On one had, I can’t really blame them. Imagine them having to spend, say, $10 Billion to upgrade the wires so NetFlix can save on postal stamps and improve their service.


14 posted on 05/18/2011 6:08:51 AM PDT by mewykwistmas (Lost your job as a birther under Obama? Become a 'deather'! Where's Bin Laden's death certificate?)
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To: bvw
IMO, wild overestimate. People don’t watch movies that often.

How much bandwidth is one movie? How much time would you have to spend on sites like this to equal one movie? One YouTube video of a few minutes can equal all of a day of regular surfing.

15 posted on 05/18/2011 6:40:01 AM PDT by decimon
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To: Huck

I have the $8.99/month no-DVD service for Netflix.

Be warned...the number of movies that you can stream from Netflix is about 1/4 of the entire Netflix movie library. And the library for streaming-only is somewhat disappointing. Most classics (Cassablanca, Ten Commandments, The Sting etc) are not available.

But I am using it to catch up on some good sci-fi that was on TV, and I’m watching the Ken Burns “Baseball” series and some of the old Mystery Science Theater series now (things I wouldn’t normally rent a DVD for).

If there is a new movie you want to watch, you can get it from Vudu.com. They have 24 hour rentals for about $4 each (more for XHD, less for stadard definition)


16 posted on 05/18/2011 6:47:35 AM PDT by kidd
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To: decimon

One source said a Netflix movie is about 3.6 Mbps. The article was talking *peak* loads, iirc. Maybe movie use is very peaky? That I do not know. I’d suspect it to be a little peaky, but not so much.


17 posted on 05/18/2011 6:52:40 AM PDT by bvw
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To: decimon

That’s us, sorry. We’re currently going through the series Heroes. Some nights we’ll watch 4 episodes in a sitting. :)


18 posted on 05/18/2011 6:52:55 AM PDT by Marie Antoinette (Proud Clinton-hater since 1998.)
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To: mewykwistmas

I had a meeting with a Comcast guy yesterday - I think the corporate vision is to phase traditional cable out in favor of the Hulu model, on demand with advertising targeting based on your profile. It’s probably a 10-year plan, but it’s obvious to me that traditional “tune in a 7” television is a dead model and everyone in the industry knows it.

One part of the model is already being tested - Comcast is already selling “zoned” tv advertising in the Chicago market. It’s possible to run 34 different ads in one section of the nightly NBC news within comcast. This broadens the sales reach considerably - more businesses can work into the model when the cost to entry is lowered and can be tailored on a finer geographic basis.

My bet is that Netflix will eventually merge with the new broadcast model and become the “premium channel.”


19 posted on 05/18/2011 6:53:12 AM PDT by sbMKE
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To: kidd

Yeah, I know. Lately I’m watching the Sherlock Holmes series from the 80s. Very entertaining and short enough to watch in one sitting. I’ve seen most classics I want to see. I keep the one DVD/month option just in case, but lately have not needed it. If there is a new release, I can always go red box (waiting for True Grit).


20 posted on 05/18/2011 7:00:23 AM PDT by Huck (The Antifederalists were right.)
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To: sbMKE

The problem is that there’s no money in $8 NetFlix subscription, but there’s on $75 basic cable packages.


21 posted on 05/18/2011 7:05:09 AM PDT by mewykwistmas (Lost your job as a birther under Obama? Become a 'deather'! Where's Bin Laden's death certificate?)
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To: listenhillary

I have no time to watch movies anymore anyway. I’m busy watching my government.

&&&
Same here.

I couldn’t care less about movies because so many of them are not worth my time. Between the filthy language and the anti-Western culture slant, the film industry has dug itself into a huge hole, IMO.

We switched dish service companies a few months back. One of the deals included was a free intoductory movie package. We watched a total of 3 during a 3-month period, and only 1 was worth our time.


22 posted on 05/18/2011 7:16:35 AM PDT by Bigg Red (Palin in 2012)
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To: kidd
Be warned...the number of movies that you can stream from Netflix is about 1/4 of the entire Netflix movie library. And the library for streaming-only is somewhat disappointing. Most classics (Cassablanca, Ten Commandments, The Sting etc) are not available.

Add to that the fact that titles come and go. A title will be in your instant watch queue and then it will go to "DVD only status" and a few months later may return to "streaming available."

FWIW: "The Sting" is currently available for streaming. I saw it in the recently added movies list and added it to my queue.

23 posted on 05/18/2011 7:20:11 AM PDT by whd23 (Every time a link is de-blogged an angel gets its wings.)
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To: Huck

When nextlix carries HBO - I’ll cancel my cable too. (And yeah, I’d pay extra for HBO - just tired of paying extra for 500 channels I never watch).


24 posted on 05/18/2011 9:34:01 AM PDT by GOPJ (Osama bin SEALed - http://www.citizenwarrior.com/2009/05/terrifying-brilliance-of-islam.html)
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To: bvw

The don’t have to watch often to add up to 1/3 of peak time flow. All it really means is during that time when the most people are on the internet a significant chunk of them are streaming a movie from Netflix. But it’s all relative measurements, could be 20 people of 300 streaming, or 200,000 out of 3,000,000, don’t know because that’s not the numbers being presented.


25 posted on 05/18/2011 9:39:53 AM PDT by discostu (Come on Punky, get Funky)
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To: GOPJ

I was never an HBO subscriber. I guess it’s true what they say—you don’t miss what you never had.


26 posted on 05/18/2011 9:46:59 AM PDT by Huck (The Antifederalists were right.)
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To: discostu

Hey, I’m not privy anymore to internet traffic logs. So I easily could be wrong on this. But still ... 60% of bandwidth for a friggin passive activity. That isn’t healthy if true.


27 posted on 05/18/2011 10:17:48 AM PDT by bvw
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To: bvw

It’s 30% bandwidth, and nobody says it’s the only thing the people are doing. You can stream a movie from Netflix and do other stuff, on the internet or out in meatspace. Cardio-cinema isn’t just a feature at gyms.


28 posted on 05/18/2011 10:21:23 AM PDT by discostu (Come on Punky, get Funky)
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To: Nightshift

gnip


29 posted on 05/18/2011 10:40:07 AM PDT by tutstar
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To: decimon

I don’t look for the ISPs to let this continue the way it has been for much longer. Expect wide spread bandwidth limits and fees for exceeding those limits. Already happening in many places.


30 posted on 05/18/2011 1:51:02 PM PDT by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: discostu

FWIW, The expert claimed it would be 60% by year end.

In any case I sticketh to my assertions about the meatspace-rackspace interface. While the megamuching of hi-def cinema might get heavy and is heavy now, it’s a fad that will pass. And pass quickly. Six months of a lifestyle of movie, movie movie will kill a bunch of people, and stink of their decaying meat will fend of thoughts of others as to emulating that ultra-passive behavior.

Most folks will get bored or sick of movies.


31 posted on 05/18/2011 2:57:43 PM PDT by bvw
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To: bvw

60% total, sort of. But again that’s internet traffic. Who knows what people not hooked to the net are doing. I watch tons of movies, I’m very healthy. It only takes half an hour to an hour of exercise and some smarts in what you eat to be healthy, that leaves lots of time for movies. I knocked down 5 movies last weekend in and around an hour with the trainer, a 2 hour bike ride, a couple of hours planning a convention and a couple of NHL playoff games.

People aren’t getting bored or sick of movies. Even with the troubles the industry is having they still hauled 10 BILLION in domestic grosses last year, and that’s just theater money, that doesn’t count buying DVDs, renting DVDs, Netflix, or illegal downloads. I’d love to be in an industry that people are sick of but can still get $31 from every man woman and child in the country through it’s least profitable distribution method.

Your problem is that you have a bad assumption. You think that if a person watches movies that must mean they do absolutely nothing else with their lives and get fat. And you’re wrong. Never forget what it means to ass-u-me.


32 posted on 05/18/2011 3:05:35 PM PDT by discostu (Come on Punky, get Funky)
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To: KoRn
I don’t look for the ISPs to let this continue the way it has been for much longer. Expect wide spread bandwidth limits and fees for exceeding those limits. Already happening in many places.

I don't blame the ISPs. If they don't charge more to the heavy hitters then they have to charge more to all.

33 posted on 05/18/2011 3:12:35 PM PDT by decimon
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To: decimon

I totally agree. The ISP has to pay for and build for their own expected capacity. When you are planning for a network, you try to anticipate the usage of your end users. When you have an already built, in production network, and 30% of your users are clogging your critical ‘pipes’, you’re going to have to pay big $$$$ to upgrade/expand to accommodate the extra traffic. Chances are, when the network was designed, it wasn’t expected that 30% of the users would be downloading video and HiDef movies 24/7. In order to stay in business, the cost of the expansion/upgrades HAVE to be passed on to the user base. The only moral way to do it, IMO is make the heavier users pay the bill.

NetFlix’s business model is built upon the above scenario, and when those costs for the end users begin to come into play in a big way, it will eventually lead back to THEIR profit margins. They won’t retain as many subscribers if they are having to pay both NetFlix AND their ISP for usage. On the other hand, what happens if the ISPs(such as cable companies) decide to get into the game and compete with Netflix? The ISPs will be at a significant advantage, which will be ANOTHER hit against the NetFlix margin.


34 posted on 05/18/2011 3:41:42 PM PDT by KoRn (Department of Homeland Security, Certified - "Right Wing Extremist")
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To: Sawdring
In my house we can have two different Netflix movies downloading and someone browsing the web at the same time. Netflix is a great invention.

Same here, in addition to a foreign-language TVoIP that my wife watches.

Unfortunately, I've recently moved from an area that had no bandwidth cap to an area serviced by Comcast. I've had my internet service a whole two weeks and I see I've already used 68% of my 250GB monthly cap.

Oops. This really sucks.

35 posted on 05/18/2011 3:50:37 PM PDT by Gena Bukin
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To: Gena Bukin
I didn't know Comcast had a cap. I should check my bill. I recently watched all the seasons of Lost in a row. I didn't touch my DVR for two months and lost a lot of good programming because I ran out of space.
36 posted on 05/18/2011 5:35:27 PM PDT by Sawdring
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To: Sawdring

Yep, Comcast has a 250 GB cap. It’s not great but could be worse.

I’m on AT&T DSL and our cap has just been implemented at only 150 GB. AT&T Uverse is supposed to have a 250 GB cap but I don’t want to switch to Uverse internet unless they will waive the modem/gateway fee and the one-time connection fee of nearly $150.


37 posted on 05/18/2011 6:22:39 PM PDT by Mr Fuji
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To: Sawdring
I didn't know Comcast had a cap. I should check my bill.

I didn't know either until I read this thread and looked into it. I've always left my wife's TVoIP console turned on 24/7 and simply turned off the TV when she wasn't watching it. Never an issue when we had Time Warner. Now I'm going to turn it to standby (in addition to turning the TV off) when it's not being used and see if this decreases bandwidth usage.

38 posted on 05/19/2011 4:29:43 AM PDT by Gena Bukin
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To: listenhillary
I have no time to watch movies anymore anyway. I’m busy watching my government.

Bah, I hate the reruns and remakes with different actors.

39 posted on 05/19/2011 6:55:56 PM PDT by MichiganMan (Oprah: Commercial Beef Agriculture=Bad, Commercial Chicken Agriculture=Good...Wait, WTF???)
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To: bvw
IMO, wild overestimate. People don’t watch movies that often.

First, I don't know if its an estimate or a calculation using actual records.

Second, I will add anecdotally that just tonight my kids and I watched a 1080p movie streamed from VUDO (Like Netflix only per movie charge instead of monthly) and last watched one only a week and a half before.

40 posted on 05/19/2011 7:03:00 PM PDT by MichiganMan (Oprah: Commercial Beef Agriculture=Bad, Commercial Chicken Agriculture=Good...Wait, WTF???)
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