According to a study by Sandvine, 20% of non-mobile internet traffic during prime time can be attributed to Netflix instant accounts during prime time usage periods in the US while streaming media accounts for 43% of peak period traffic. While Netflix accounts for almost half of the streaming bandwidth between 8p and 10p utilized by only 1.8% of Netflix subscribers.
While only 1.8% of Netflix subscribers are using the streaming capabilities, CEO Reed Hastings envisions Netflix as a streaming service. “In fact, by every measure, we are now primarily a streaming company that also offers DVD-by-mail.”
I happen to agree with Hastings as my video content viewing has dramatically changed from TV to Netflix Instant since I dropped premium channels such as HBO and Starz. In addition to the 1 disc in mail I tend to watch a movie or TV episode on the iPad at night and I’m watching less and less TV except for the few shows which I follow.
Content in the cloud (both audio and video) is the future.