Media

Netflix now accounts for 25% of North American Internet traffic

NOTE: GrowthBeat -- VentureBeat's provocative new marketing-tech event -- is a week away! We've gathered the best and brightest to explore the data, apps, and science of successful marketing. Get the full scoop here, and grab your tickets while they last.

If for some reason you need further convincing that Netflix is taking over our lives, you only need to look at Sandvine’s latest report, which shows that the video streaming company is now the biggest source of North American web traffic, accounting for 24.71 percent of aggregate traffic.

Netflix also accounts for about a third (29.70 percent, up from 21 percent last fall) of all download traffic — not surprising, since high-definition streaming is a major bandwidth hog. Netflix ended up surpassing BitTorrent for both download (29.70 vs. 10.37 percent) and aggregate Internet traffic (24.71 vs. 17.23 percent).

The traffic numbers show us that Netflix is an even more dominant force on the web than some think, and it also shows us just how quickly new markets will jump on the Netflix bandwagon.

After launching in Canada last September, Netflix managed to snag over 800,000 registered users there by the end of March 2011. Sandvine points out that that number accounts for around 10 percent of Canada’s broadband households, and that Netflix traffic now consumes 13.5 percent of downstream traffic during evening peak hours in Canada.

A big reason for Netflix’s quick growth in Canada is the company’s focus on licensing content that would appeal to Canadian viewers, Sandvine says. Netflix generated $12 million in revenue in Canada last quarter, but still lost $11 million due to money spend on licensing.

Netflix is now gearing up to launch in another international market this year, although it hasn’t given any hints as to where.

Via TechCrunch

Trackbacks

  1. [...] realize that it was a pretty good deal. Seeing how recent reports show that Netflix accounts for upwards of 25% of all North American downstream bandwidth during peak hours, I can say with confidence that we were getting our monies worth. Then top that [...]

  2. [...] Devindra Hardawar, VentureBeat. “Netflix now accounts for 25% of North American Internet traffic.” May 17, [...]

  3. [...] and off-putting adverts and warnings before them. Incredibly, Netflix now accounts for a whopping 25% of all internet traffic in North America. Of course this is in part due to consisting of high-bandwidth content, but the [...]

  4. [...] May of this year, MediaBeat reported on a study performed by Sandvine.  The results of the study showed that Netflix streaming [...]

  5. [...] o kadar yaygın ve populer ki, Kuzey Amerika internet trafiğinin %25′inin Netflix servisi oluşturuyor. Netflix’in 2010 cirosu 2,17 milyar [...]

  6. [...] uneven demand (highly skewed toward evenings, when, by some accounts, its video streaming service represents 29% of all Internet traffic). In this kind of environment, Netflix didn’t want to experience service interruptions due to [...]

  7. [...] toward evenings, when, by some accounts, its video streaming service represents 29 percent of all Internet traffic). In this kind of environment, Netflix didn’t want to [...]

  8. [...] down on Christmas Eve, and users often encounter buffering at other times. Netflix comprises about 25% of North American Web traffic.The problem is, the Internet wasn't built to handle so many video packets being sent at once, [...]