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  (Source: Lifehacker)
New study fuels speculations that Netflix will cause an internet meltdown

Thanks to a study just released, some sources are theorizing that Netflix, the streaming video service, could have the potential to dominate the internet and gobble up American broadband.  

Netflix currently boasts over 15 million members and according to network management company Sandvine, their 2010 Global Internet Phenomena Report indicates that Netflix accounts for 20 percent of downstream traffic during peak periods beating out YouTube, iTunes, Hulu, and p2p file-sharing.  

The spike in online streaming video users for Netflix appears to have originated from customers in Canada.  The company's traditional DVD-by-mail service was not offered as an option to consumers there, they were only provided with the choice of streaming video.  

In the week following the launch of service to Canadians, 10 percent of Netflix online usage came from that country and video streaming usage numbers will continue to increase in Canada and are expected to rise exponentially in North America overall, according to Sandvine.

In response to the study, one online report suggests that another reason that Netflix may be gaining momentum could stem from the fact that while online users spend only moments at a time on YouTube, they tend to spend hours at a time on Netflix.

Despite growing suggestions that Netflix will stretch broadband capacity to the limit during peak hours, the co-founder of Akamai -- the company that boasts 77,000 servers with hard drives and is responsible for Netflix delivery of content with local servers -- reports that no one should be concerned about a surge of streaming video crashing the internet. 

"That video is growing rapidly and going to be huge is true," said Akamai's Tom Leighton. "But there's tons of capacity out at the edges of the network....plenty of capacity in the last mile to your house."

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RE: Cry more bandwidth providers.
By MadDogMorgan on 11/4/2010 9:12:39 PM , Rating: 5
We don't need the bandwidth for the next 20 years today, we need enough for today. Your point is relatively good, taking out the hyperbole. I'm just suggesting that companies are not likely to buy the gear today to build up for projected (read: guessed) bandwidth requirements of years in the future. Nor would it make sense for them to. As technology marches forward in equipment development, the cost per Mb/sec of bandwidth decreases. They are better off financially to wait and only build what's needed today.

What we need is to allow the process of supply and demand to work. As demand increases, someone will be motivated by the promise of profit to supply a solution to that demand.

I wish the college of barely would require a course in capitalism as part of it's core curriculum as I didn't get one either when I graduated, barely.

I also think we (voters) need to work to eliminate government granted monopolies on internet service delivery. Give more suppliers a shot at delivering what's demanded without having to buy some special legislation from local officials.

By marvdmartian on 11/5/2010 10:44:01 AM , Rating: 1
The problem with building enough for today's needs is that by the time you're done building it, it's not today anymore. Make sense?

While building for 20 years from now isn't really feasible, due to the fact that (hopefully!) technology is going to be so far ahead of today in 20 years, that our best guess may fall drastically short of our needs, I would say that building for 5 years down the road is a good idea.

With, of course, the knowledge that once you're done upgrading, it will be time to upgrade again. Much like the cell phone companies put out 3G networks, knowing full well that by the time they got it fully implemented, they were going to have to have 4G ready to begin rolling out (and why they're likely already planning their 5G networks now).

“Then they pop up and say ‘Hello, surprise! Give us your money or we will shut you down!' Screw them. Seriously, screw them. You can quote me on that.” -- Newegg Chief Legal Officer Lee Cheng referencing patent trolls

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