Netflix gobbles up one-third of bandwidth in the US

By Staff Reporter - 21 Nov '14 19:32PM
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Whether it's Orange is the New Black, Breaking Bad or House of Cards, millions of viewers are hooked on Netflix's streaming service. New research found Netflix takes up more than one third of downstream Internet traffic during hours of peak use.

Between Netflix and other video streaming sites like YouTube and Hulu - and social networks like Facebook and internet retailers such as Amazon - around 20 gigabytes of data is consumed by every North American internet user on a monthly basis.

"With both Netflix and Amazon Instant Video gaining bandwidth share in North America during 2014, it will be fascinating to see how a standalone HBO Go streaming option will impact networks when it launches in 2015," Dave Caputo, chief executive of network equipment maker Sandvine, said Thursday in the company's twice-a-year "Global Internet Phenomena Report." Caputo was referring to HBO's plans to open its Internet offering to people who aren't subscribers via cable or satellite.

Netflix's commanding share of Internet traffic has put it at odds with Internet Service Providers such as Verizon and Comcast, who say Netflix overwhelms their networks with traffic and that the company should have to pay for all the bandwidth it uses. Earlier this year, Netflix paid undisclosed amounts of money to both Verizon and Comcast in exchange for being able to interconnect directly with their networks, resulting in faster streaming for customers.

The study also found that BitTorrent file-sharing traffic continues to drop as an overall percentage of bandwidth consumption, representing 2.8% of peak-period downstream traffic in North America for the fall 2014 period. Over all, BitTorrent accounts for 5% of bandwidth usage in the region - down from 31% in 2008. In the Asia-Pacific region, however, BitTorrent still represents more than 33% of total traffic, according to Sandvine.

Meanwhile, Amazon Instant Video is also beginning to pick up steam, though its share is still small compared with Netflix.

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