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Netflix, Inc. (NFLX) Truly Dominating The Internet

netflix inc (NASDAQ: NFLX)

Netflix, Inc. has more than 65m subs in more than 50 countries, and on a daily basis it streams more than 100m hours of video content. The US firm is truly dominating the segment, and its dominance is better represented by a simple chart from Sandvine, which shows that Netflix streaming accounts for 36% of the Internet bandwidth in North America.

Netflix inc (NFLX)

Growing dominance of video-streaming firms

The data from Sandvine, a network servicing firm, represents ‘downstream’ bandwidth for the “fixed access consumer or the information people gather from browsing the Internet via Wi-Fi at home or the office,” says a report from Market Watch. This does not include the data users upload to the cloud or with the use of a cellular 4G or LTE network.

The chart shows the rising clout of online video content offered by Netflix, Inc. , YouTube, Amazon, Instant Video and Hulu, ABC, and Comcast’s NBCUniversal. All these together account for 56% of the North America’s Internet bandwidth. This is an increase of 7% compared to 2013, when Amazon video was not present. As can be seen, Netflix’s share has been rising while YouTube have been able to come back strongly after a drop last year.

Netflix dominating Australia too

Apart from North America, Netflix’s clout is also clearly visible in Australia, where the Internet usage has grown at a sharp rate since the debut of the US firm there. A new data from the Australian Bureau of Statistics shows that the Internet usage spiked in Australia in the last six months. It is around the same time when Netflix launched its services in the region i.e. in March, says a report from Gizmodo Australia.

The data is from June 2014 to June 2015. Comparing the data consumed by the fixed-line broadband users in June 2014 and June 2015, a striking growth of 40% is noticed in terms of data consumption. On comparing the data downloaded in the quarter ending June 30 with the quarter ending December 31, 2014 an increase of 21% is noticed. This is a sharp jump, and most likely it has come from the new Netflix users across Australia.

Netflix, Inc. ’s impact on the country’s Internet infrastructure was evident as early as in April. That time, a report from Sydney Morning Herald claimed that Netflix accounted for 50% of the traffic from the Internet service providers.

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Aman is MBA (Finance) with an experience on both marketing and Finance side. He has work as a Risk Analyst for AIR Worldwide, and is currently leading VeRa FinServ, a Financial Research firm. Favorite pastimes include watching science fiction movies, playing PC games and cricket.

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