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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: Come on, Netflix is not alone.
By Solandri on 11/5/2010 3:29:09 AM , Rating: 2
Netflix's unlimited service only costs $7.99/mo. Even at 3 movies a month, it's worth it.

No, what's going to happen is the people with ISPs who cap their "unlimited" internet are going to hear their friends with better ISPs talking about how great Netflix is. These people will then complain to their ISPs about how outrageous the cap/price is, or switch if there's a viable competitor.


RE: Come on, Netflix is not alone.
By AlexWade on 11/5/2010 8:33:00 AM , Rating: 2
Unfortunately, in rural America your choices are satellite internet, cellular internet, or DSL, if you are lucky. If you are unlucky, just satellite internet. This country needs a much better internet infrastructure and it needs net neutrality. Unfortunately, every senator or representative who was supporting net neutrality lost and the republicans are more concerned about turning back time. They weren't voted in because of net neutrality. Please let the new representatives and senators know to push for net neutrality. Do it now, before corruption sets in.


RE: Come on, Netflix is not alone.
By FITCamaro on 11/5/2010 8:38:47 AM , Rating: 1
Government is the reason we have such a poor internet infrastructure. Not the solution.


By omnicronx on 11/5/2010 9:32:12 AM , Rating: 2
Lets face it, the Telco industry is a monopolistic opportunity playground, it was going to happen anyways with or without government intervention, and is the case all around the world.

So lets not kid ourselves here, in the here and now, Profitability is the main reason why you have such poor infrastructure in rural areas, not because of the government..

Its just not profitable to build infrastructure in rural areas in most cases when you could be spending money on areas with higher population densities.


RE: Come on, Netflix is not alone.
By gamerk2 on 11/5/2010 9:33:08 AM , Rating: 4
Please, stop it. Ever since the internet was de-regulated (Thank you, FCC), almost all foward progress has come to a halt. You are seeing free market economics in action: In the lack of any compeititon, its cheaper to simply throttle users then upgrade infrastructure.


RE: Come on, Netflix is not alone.
By twhittet on 11/5/2010 9:46:28 AM , Rating: 3
Exactly - it's a lot easier for companies to put high speed anything in a few large cities and rake in $ than it is to put that same service to millions of remote locations. Without the government, most farms probably wouldn't even have normal telephones right now.


RE: Come on, Netflix is not alone.
By Spivonious on 11/5/2010 11:16:35 AM , Rating: 1
Are you referencing the Telecommunications Act of 1996? I don't know about you, but my 12Mbps cable modem connection is a lot faster than the 28.8k dial-up connection I had in 1996.


By HoosierEngineer5 on 11/5/2010 6:16:40 PM , Rating: 2
My only (non satellite) internet possibility is at the same 52 kb/s that I had back in 1998. I believe I was using a 200 MHz Pentium Pro back then.

I live less than 3 miles from a city whose size is in the to 75 in the nation.

Sorry, I don't believe I can support the argument. In fact, the commerical internet providers are not working diligently to provide upgraded internet service. There no incentive. They have monopolies, know it, and are motiviated to maximize profits. That may be OK if there are alternatives available, but for something that is as essential to everyday life, it is unacceptable. Capitalism relies on competition to drive prices down and improve service. Without this, you get the type of behavior displayed by the internet service providers. The only alternative I am aware of is government intervention.


RE: Come on, Netflix is not alone.
By FITCamaro on 11/5/2010 12:48:03 PM , Rating: 2
Why is there no competition though? Why can't communities build their own internet services as some have tried to do?

GOVERNMENT!

Yes in rural areas, no ones going to want to build. Guess what? That's what you get for living in the middle of nowhere. Fast internet isn't a right. It's a service. A luxury. The rest of us shouldn't have to subsidize your internet because you choose to live in the middle of nowhere.


RE: Come on, Netflix is not alone.
By Iaiken on 11/5/2010 1:03:21 PM , Rating: 3
quote:
Why is there no competition though? Why can't communities build their own internet services as some have tried to do?

GOVERNMENT!


???

You mean those cases were the municipal government tried to provide an internet infrastructure for their locale and the local telecom buried them in court? Did you also forget that in every single instance of that happening, the plaintiff was also the sole service provider in the area. In every case, the plaintiff was able to restore their previous monopoly.

Face it, competition in the north american communications market is a total sham because the exceptions (competition in major cities) disprove the rule (there's no competition outside of major cities).

In cases where there are hostile monopolies that are taking advantage of the population, the government must step in somehow. I personally don't care if it's regulation, anti-trust suits or fostering competition (in all it's forms), but until that happens, the telecoms are just going to keep taking advantage of their current position.


RE: Come on, Netflix is not alone.
By FaaR on 11/5/2010 1:09:32 PM , Rating: 3
Sorry, WRONG.

It's the corporations that block community ISPs, and they do so vigorously even though the reason those communities built their networks is because those same corporations offered such crappy (or non-existant) service that they were forced to.

So the corporations who on one hand don't want those communities as customers, can't stand those communities as a percieved competitor. Your anti-government stance stands at odd angles to reality buddy. You should educate yourself better before speaking out on this matter again... ;)

Ars have written a number of times on this matter, here's the most recent one just a day or three ago:
http://arstechnica.com/tech-policy/news/2010/11/th...


By FITCamaro on 11/5/2010 3:38:04 PM , Rating: 2
quote:
It's the corporations that block community ISPs


Yes they do it through the mandated monopolies they were given.


RE: Come on, Netflix is not alone.
By mostyle on 11/9/2010 7:20:39 AM , Rating: 2
quote:
push for net neutrality


Really? In America? I'm thinking not. Unfortunately we have bred a society that thinks it is okay to push our ideals on to another because our way is 'better.'

We as Americans aren't taught to be neutral. Look at the info were fed by the media constantly. In one form or another we are told what to think or believe and unfortunately a large part of the population doesn't fall into the 'free thinking' category whereas they actually would form opinions that are truly theirs rather they see an existing ideal and fall in line with it.

Popular media... There is a reason its called popular.

In case you're wondering... I am American. I just loathe the ease with which a lot of Americans can't see past the smoke and mirrors and form their own ideas.

-Tony


"My sex life is pretty good" -- Steve Jobs' random musings during the 2010 D8 conference














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