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Summary:

Netflix accounts for 33 percent of all of North America’s peak residential downstream traffic, which makes it much bigger than any of its direct competitors: Based on those traffic numbers alone, Netflix sees more than 60 times as much usage as HBO Go.

Netflix may have had a tough time with investors, but it’s still a big hit with consumers, with none of its competitors even coming close to it in terms of usage: That’s one of the key take-aways of Sandvine’s new Global Internet Phenomena Report, which points out that Netflix now accounts for 33 percent of peak residential downstream traffic in North America.

Amazon’s video service on the other hand, which is widely seen as its biggest competitor, only causes 1.75 percent of peak residential downstream traffic. Other competitors fare even worse in Sandvine’s report: The network management company sees Hulu causing 1.38 percent of residential peak downstream traffic, with HBO Go barely registering with 0.52 percent.

The only other video service that continues to make a bump is YouTube: The Google-owned video service now accounts for 30.97 percent of peak mobile downstream traffic as well as 14.8 percent of all peak residential downstream traffic in the North America. And YouTube isn’t just a hit with Americans and Canadians: It’s also responsible for 15.9 percent of all peak residential traffic in the Asia-Pacific region as well as 21.84 percent of all peak residential traffic in Europe.

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  1. We like watching episodic TV series, most of which we find on Netflix, which doesn’t necessarily have all seasons. Sometimes we find what’s missing on YouTube, or iTunes. Hulu Plus was disappointing with limited programming and ads. We’d rather pay for shows than have to watch ads.

  2. Netflix – unlike HBO go – does not require going through the MSO’s cumbersome interface for operation. Hulu+ , for us anyway, is also frustratingly sluggish relative to Netflix. Amazon video works remarkably well, but has a dearth of programming aside from first run HD films. With most networks now the download speeds (even for HD) exceeds the real-time playing speed of the films which bodes well for growth. Moreover Amazon has recently been offering more “still in theaters” films – such as Arbitrage (which was $7.99 to rent for 24 hours). This is an exciting trend for families and groups that would like to use their pricey (most recently much less pricey) home theaters.

  3. Stanley Gilbert Wednesday, November 7, 2012

    With Netflix’s continuing problems with streaming, and buffering issues now would be a great time for Amazon to expand their catalogue of titles available for download and stream-renting. E-mail them the suggestion today!

  4. I cannot understand all these NFLX haters. The company is strengthening its infrastructure, it’s adding markets to lessen the impact of North America on it’s core business and to assure future long term profitability and with a 60% price increase it didn’t lose enough customers to make a big difference. If price was the only issue affecting customer decisions Gucci and Prada wouldn’t exist. AMZN’s upstream activity is a grain of sand in the dessert called NFLX . If NFLX was a start up it would lose money for the next ten years and it wouldn’t matter. Hastings is a genius. He is treating NFLX’s international expansion as a startup while the North American arm is Ruling the streaming game. Sometimes we get so mixed up with numbers that we forget common sense. NFLX makes sense as a business but mainly it makes sense to consumers and Sandvine’s latest Internet phenomena report proves it. Some of you were doing the same thing when Steve Jobs took over AAPL and it’s share price was $7 and with AMZN when it’s share price was $10. NFLX is on the verge of becoming a huge multinational power house and as broadband expands around the Globe it will be first to market years ahead of everyone else. Sure it’s going to lose money for the next couple of quarters but the company predicted it as part of its business plan, prepared for it and is treating it as part of its business cycle. In the unlikely event that NFLX flops what it’s building is so large and necessary it will still be a buyout target in the future. In my opinion NFLX is money in the bank.

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