Seeking Alpha

A new study finds Netflix (NFLX) accounts for close to a third of all traffic on broadband...

A new study finds Netflix (NFLX) accounts for close to a third of all traffic on broadband networks in North America, roughly the same level as a year ago. Though the company is a drain on broadband providers, it's a symbiotic relationship as its growing popularity also offers cable/satellite/telco companies an easier way to upsell customers faster speeds.
Comments (7)
  • DIgitalMediaView
    , contributor
    Comments (668) | Send Message
     
    That Sandvine analysis provides an interesting perspective on why GOOG's competitive moves with YouTube are going to impact NFLX opportunity long-term. Video consumption is increasingly moving to mobile platforms (http://mwne.ws/11EriQM), and YT crushes NFLX on mobile traffic. Google is set to dominate the mobile broadband ecosystem that will increasingly eclipse fixed-line distribution.

     

    "Sandvine also tracks streaming traffic to mobile devices over wireless networks. And here it said that Netflix has made a move from 2.2 percent of downstream traffic to 4 percent in the last 12 months. YouTube, though, is still dominant: If you’re on the go, and you’re watching a moving image, there’s a very good chance you’re seeing something hosted by the world’s biggest video site." YouTube has almost 8X mobile share compared to NFLX, 27.33% to 3.98%.
    15 May 2013, 09:39 AM Reply Like
  • Tvaddic
    , contributor
    Comments (250) | Send Message
     
    People will watch a short clip on their phone, but very few people want to watch a tv show on their phone. I don't know anyone that watches any long form video content on their phone, especially streaming. And the Netflix app has a BUNCH of installs on the App Store and Google Play, people just don't watch that content on the go.
    16 May 2013, 12:25 AM Reply Like
  • DIgitalMediaView
    , contributor
    Comments (668) | Send Message
     
    Tablets. http://tcrn.ch/10sEgxI

     

    "Overall, digital video saw growth across all platforms, with an increase of 30 percent year over year in Q4 2012 versus the same time in 2012. TV and sports content was responsible for a large chunk of that new viewership, and streaming video available has grown 50 percent between Q1 2011 and Q4 2012. Smartphones and tablets were both among the biggest growth categories in terms of devices, and now account for more than 10 percent of all video starts combined, the first time they’ve reached that high of a share. Though both smartphone and tablet views have increased over the past couple of years, tablet viewing is accelerating at a faster rate and has already begun to pull away from phones."

     

    Tablets and kids. http://read.bi/12CTCOO

     

    "Tablet use peaks in the evening hours and weekends, when households historically have gathered around TV sets: Tablets are also family-friendly and are often shared by parents with their children. Because tablet users watch video according to patterns similar to those of traditional TV audiences, they are easier to understand and target for marketers and broadcasters who are already comfortable with the world of TV. For example, tablet video viewers tend to spend most of their time on longer videos."

     

    "Among younger viewers in the U.S., millennials aged 14 to 23, tablets are nearly as popular for watching TV shows as Blu-rays or DVDs: Twenty-five percent of respondents in this age group say they watch TV shows on tablets everyday or weekly, compared to 24 percent who do so on DVD or Blu-ray, according to Deloitte's State Of The Media Democracy survey conducted in late 2012."
    16 May 2013, 03:02 AM Reply Like
  • Gary J
    , contributor
    Comments (4784) | Send Message
     
    Thanks. I'll take my movies on a big display.
    15 May 2013, 09:47 AM Reply Like
  • Joe2922
    , contributor
    Comments (421) | Send Message
     
    So to use netflix well one needs to spend an extra $10-20 for higher net speed? I'll stick with cable, live sports, easy, $30/month for hi def pkg.
    15 May 2013, 10:37 AM Reply Like
  • Tvaddic
    , contributor
    Comments (250) | Send Message
     
    1. Netflix compresses their data so you don't have to get expensive tiers.
    2. Very few people upgrade their internet for one service, which is why Netflix compresses the data.
    16 May 2013, 12:27 AM Reply Like
  • Gary J
    , contributor
    Comments (4784) | Send Message
     
    the extra cost no big deal for many
    15 May 2013, 11:48 AM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector