Executive Summary
As iTunes is to music, Netflix is to video – is this a new syllogism? In the “Fall 2010 Global Internet Phenomena Report”, Sandvine revealed that Netflix traffic accounted for 20.61% of downstream traffic during peak period in North America.

In the months that followed the report’s October release, the Netflix statistic was repeated thousands of times in media articles, analyst reports, conference presentations, and consumer blogs. Even today, almost 7 months later, “Netflix is 20% of downstream traffic” continues to appear in articles discussing Internet traffic.

The report also shed light onto the first few weeks of Netflix’ expansion into Canada, hinting at dramatic service uptake and potentially massive implications for Canada’s service providers. Netflix’ venture into Canada is no doubt being carefully monitored by service providers around the world, for it gives them an idea of what might be in store in their own backyard if Netflix pursues further international expansion.

7 months is an eternity in the Internet age, and much has changed since the Fall 2010 report was released. Since that time:

• Netflix has added 6.7 million subscribers.
• Netflix introduced a “Streaming Only” service tier in the United States, mirroring the only service available in Canada. In announcing the new service, Netflix CEO Reed Hastings said, “We are now primarily a streaming video company delivering a wide selection of TV shows and films over the Internet.”
• Netflix Canada has continued to expand the library of available content and has grown to become a top application on Canadian broadband networks.
• Netflix posted a blog entry showing the performance of US and Canadian networks as measured by bandwidth delivered.
• Netflix announced a deal to air exclusive content, the television series “House of Cards”, reportedly outbidding major networks including HBO and AMC.
• Information has repeatedly surfaced5 hinting at Netflix’ continued international expansion plans, with reports suggesting Europe, Latin America and Asia are the prime targets.
• Streaming on Nintendo Wii and Sony Playstation 3 no longer requires a physical disc.
• Apple began shipping a version of the AppleTV with integrated Netflix streaming.

What does all of this activity mean for the Internet providers of the world? Several prominent findings are enclosed in this report.

Netflix has achieved subscriber penetration of 28% in the United States and 11% in Canada, and the average Netflix subscriber consumes more than a gigabyte of data per day. Both of these metrics (market penetration and daily data consumption) continue to grow at aggressive rates.

Read Full: Netflix Rising

PDF format, 2.69MB, 10Pages.

Global Internet Phenomena Spotlight: Netflix Rising
sandvine

What does it all mean?
Even doubters (if there were any left) must now agree that the age of Internet video is upon us. 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 localized to the United States.

How much more can Netflix grow? A whole lot. Consider that game consoles have a huge market penetration, set-top boxes (Roku, Boxee, Apple TV11 etc) are becoming mainstream, and you would be hard-pressed to go to an electronics store and purchase a TV that didn’t include native Netflix support. It’s not absurd to think that within a few years, >95% of North America’s living rooms will be “Netflix-ready” (this includes late-adopters who refuse to watch Netflix on a laptop). ...

Netflix Coupons & Netflix Coupon Codes

Netflix is the world's largest online movie rental service, with more than 15 million subscribers.

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