#8 M&E Research : Netflix + YouTube garner 50% share, P2P down under 10%
Netflix continues to hold and consolidate its supremacy in video streaming which further reinstates incredible value it offers to its growing tribe of 31 m+ North American subscribers as reported by Sandvine in its Global Internet Phenomena Report 2H2013. The reports brings optimism for content owners and studios by reflecting renewed consumers inclination for non-pirated content (at 7.39% on aggregate basis) as more value driven and convenient streaming services become mainstream. In pure numbers play Netflix (at 31.62%) together with YouTube (at 18.6%) accounts for over 50% of downstream traffic on fixed networks in North America. Netflix which is barely 2 years old in Europe and still not available in its largest markets (France and Germany) has already registered notable traffic (at 3.45%) with potential to upstage established players. The report brings detailed findings on the traffic composition across all continents under fixed line and mobile access, some of the key findings include
- Netflix which surpassed HBO in user subscription in Q3 this year is by far the biggest source of residential internet traffic in North America, representing 31.6% of all downstream Internet traffic during prime-time hours and remains well ahead of any other streaming service with Amazon (at 1.61%) and Hulu (1.29%) combined barely making 3% of all peak downstream traffic during the same time period. It is still early if Amazon’s streaming service fortune can change with launch of its original programming series or the service remains widely discussed but with little market share ?
- Real-Time Entertainment has remained top ranking as the dominant traffic category being responsible for over 67% of downstream traffic during peak period.
- Average monthly mobile usage in Asia-Pacific is growing rapidly and now exceeds 1 gigabyte largely driven by video traffic (greater than 50% of peak downstream) which is more than double the 443 megabyte monthly average in North America.
- Peer-to-peer file-sharing networks like BitTorrent have taken a heavy beating and have plummet to less than 10% of total daily traffic in North America, down from over 31% five years ago.
- In non-US world YouTube remains as the biggest consumer of bandwidth. In Europe it represented 28.7% of downstream traffic, in Latin America downstream share is 36.8% and in Asia-Pacific its represents 31.2% of downstream share.
- YouTube continues to rule the mobile traffic in the US as the top downstream site controlling over 17.69% of the total traffic (although down from 31% during the first half of the year), followed by Facebook (at 15.44%) . In terms of downstream traffic, the roles seem reversed with Facebook accounting for 20.62% of upstream traffic, compared to YouTube’s 13.20%. Netflix which become available not so long ago is gaining ground (at 5%) having registered a 100% growth in last 18-months.
The report also mentions largely unchanged mean usage on fixed access for monthly consumption at 45 gigabytes but the usage trends can dramatically change as major service providers plan to introduce data caps in coming quarters.