A recent study conducted by the internet traffic experts at Sandvine Inc. revealed that peer-to-peer file sharing networks have just been surpassed in North American bandwidth usage by Netflix, which may be the first time in the history of the internet that the largest percentage of internet traffic is from content that is actually paid for. Peer-to-peer networks like BitTorrent have long held the top spot of U.S. broadband traffic, with a large percentage of usage coming from the sharing of copyrighted files. According to the report though, Netflix, the popular online service which streams movie and television shows, is now the “unquestioned king of North America’s fixed access networks.”
When measuring total web traffic and averages over a 24-hour period, Netflix accounts for 22.2% of North American web traffic as opposed to BitTorrent’s 21.6% share. During the peak prime time hours between 8 and 10 PM, Netflix even hits 29.7% of all wired network traffic – signifying the rapid growth of Video-on-Demand and Real-Time Entertainment services.
The growth of Netflix and similar online alternatives certainly benefit the consumer, with monthly subscriptions costing only $7.99 for Netflix’s all-you-can-watch, streaming-only service. Traditional TV networks, however, are not too pleased with the online competition threatening their business model. Also, the enormous amount of bandwidth that Netflix takes up decreases internet speeds for other users, which is one of the main arguments against Network Neutrality. While Netflix is currently only available in Canada and the United States, CEO Reed Hastings sees Netflix expanding in the future into “all the markets where people have broadband and like TV.”
Who knows what will happen, but maybe, just maybe… the traditional television/boob tube/idiot box will disappear altogether one day – from a simple $3 billion idea that was launched after Hastings was charged late fees for returning a copy of Apollo 13 after the due date.
Photo by Jay Yarow via BusinessInsider