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Internet trends report predicts that real-time entertainment applications will account for 55 to 60 percent of peak aggregate traffic by the end of this year

A study of internet trends conducted by Sandvine has revealed that North American web users have become increasingly interested in on-demand applications like Netflix, and this enthusiasm for real-time entertainment categories will likely continue to grow.

Sandvine is a provider of intelligent broadband network solutions for fixed and mobile operators. It releases a Global Internet Phenomena Report annually, and has done so since 2002. These reports analyze internet phenomena and traffic on the web in North America, Latin America and Europe. 

In the Global Internet Phenomena Report: Spring 2011, Sandvine found that Netflix is now 29.7 percent of peak downstream traffic in North America, and has become "the largest source of internet traffic overall."

In 2009, real-time entertainment applications consumed 29.5 percent of peak aggregate traffic, and today, that number has increased to 49.2 percent. According to Sandvine's predictions, this category will account for 55 to 60 percent of peak aggregate traffic by the end of this year.

In Europe, real-time entertainment has steadily increased to 33.2 percent of peak aggregate traffic from 31.9 percent in fall 2010, and BitTorrent (peer-to-peer file sharing protocol) is the largest source of upstream internet traffic at 59.7 percent and also downstream internet traffic at 21.6 percent. The study reported that European subscribers consume twice the amount of data as North Americans.

In Latin America, real-time entertainment accounts for 27.5 percent of peak aggregate traffic. The report also found that social networking accounts for 14 percent of network traffic, which is more traffic than YouTube

"The information and trends in Sandvine's Spring 2011 Global Internet Phenomena Report emphasize the need for innovative solutions to keep up with rapidly evolving consumer demands for content and connectivity," said Dave Caputo, President and CEO of Sandvine. "The dramatic growth of Netflix and its impending global expansion are prime examples of a growing appetite for real-time entertainment. It is also important for fixed and mobile broadband providers to have real-time policy control capability, made possible by insightful business intelligence, in order to put sound strategic decisions into action."

The Spring 2011 Global Internet Phenomena Report is based on anonymous and voluntary data collected from mobile and fixed service provider networks in North America, Europe and Latin America, and over 220 service provider customers in over 85 countries.

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By nafhan on 5/18/2011 10:12:25 AM , Rating: 5
Netflix Gobbles 29.7 Percent of Peak Downstream Traffic in North America
Netflix isn't "gobbling" anything. This is people making a choice of how and when to use services they are paying for.

As an aside, ISP's that are upset about this are generally upset because this is eating into their TV business, and for the small number of ISP's that don't have the capacity to provide what they have sold, that's not Netflix's fault... They need to invest in infrastructure and/or adjust their pricing and ToS.

RE: Disingenuous
By Iaiken on 5/18/2011 10:41:16 AM , Rating: 5
You forgot the part where this is causing ISP's to get caught for previously overselling their available bandwidth and then getting sued by customers when they can't actually deliver.

RE: Disingenuous
By Motoman on 5/18/2011 11:41:49 AM , Rating: 2
The problem there being that the consumers have no case, since all ISPs sell their services as "up to Xmb" without any guarantee of any minimum bandwidth level at all.

That will never change without industry regulation. The only rational solution is to require all ISPs to sell their services with a guaranteed MINIMUM bandwidth. That would be something that could be monitored and verified.

...some people say selling at an "average" would be fine, but that opens up a different can of worms. An average over time still allows your internet connection to be unusably slow at peak times.

RE: Disingenuous
By Akrovah on 5/18/2011 11:49:30 AM , Rating: 2
You can't guarentee a minimum bandwidth either though. Every ISP has periods of service interruption. Obviously you are not getting your minimum bandwidth at that point in time, and then the ISP still gets sued.

RE: Disingenuous
By Motoman on 5/18/2011 11:56:50 AM , Rating: 2
One can imagine that appropriate provisions could be given for things that the ISP can't reasonably be expected to power outages or some idiot cutting their line with a shovel.

It's just like getting paid-for TV, either by cable or buy a contract that says you get 100 channels. If a storm or whatever prevents you from getting your 100 channels for some period of time, that's the way it goes...people don't sue DirecTV for the 8 hours a month when they didn't get any service because of something DirecTV couldn't have managed.

RE: Disingenuous
By SunTzu on 5/22/2011 2:13:46 PM , Rating: 2
That's wierd, cus ive got a guaranteed 50/10 with my connection, up to 100/10, with a federal mandate that it has to be at 100/10 for x (i dont know how often its allowed to drop) hours of the day. I live in Sweden, and our ISPs have no problems with this. The only connections that arent forced to follow this are 3g mobile connections, for technical reasons.

RE: Disingenuous
By EricMartello on 5/23/2011 12:55:05 AM , Rating: 2
It's called and SLA, brah...get one if you need it.

RE: Disingenuous
By YashBudini on 5/20/2011 12:33:44 AM , Rating: 2
"up to Xmb"

And I could live with that if it wasn't pure fiction. TW used to advertise here "up to 5", we never saw more than 2. When they claimed "up to 10" we never saw over 3, and I mean NEVER, at any hour.

And Turbo is a joke, how long is its duration? 50 milliseconds?

RE: Disingenuous
By nafhan on 5/18/2011 12:03:30 PM , Rating: 2
That's why I said the ISP's need to adjust their prices or ToS if they can't handle it and are unwilling to invest in infrastructure.

RE: Disingenuous
By Reclaimer77 on 5/18/2011 11:13:04 AM , Rating: 2
Yup. Before I switched to Netflix my local teleco's basic cable package was $65! And that's ANALOG basic cable. Seriously, what the FU#%!? I can only guess what they would want for premium HD programming...

My only gripe with Netflix so far is the lack of V-sync. This causes some pretty bad tearing in the image at times because the frame rate of the stream isn't synced with the refresh rate of my TV. But that's a smile compromise to make for such savings!

RE: Disingenuous
By nafhan on 5/18/2011 12:10:28 PM , Rating: 2
I'm in the same boat. My only annoyance with doing the Netflix/Hulu thing is availability and timeliness of certain shows. I'd like it if I could legally watch everything as soon as it's available on TV; not enough to pay an extra $50+ a month, though. TV just isn't worth that much to me.

RE: Disingenuous
By Reclaimer77 on 5/18/2011 12:54:05 PM , Rating: 3
That's why I also got a nice over the air antenna for local channels. Why not, I figured, my set already has a built in HD tuner. Most do today.

Netflix + antenna > cable. Imo.

RE: Disingenuous
By YashBudini on 5/20/2011 1:05:28 AM , Rating: 2
Netflix + antenna > cable

Because frankly I use cable channels to catch up with networks shows I missed more than anything else. Lots of things like A&E Biography are at the public library, ie almost free rental. The supermarket has a Red Box for slightly older $1 rentals, if I even care.

I may need a DVR with this combo if I can download at off-peak times.

I would miss AMC's The Walking Dead, it's strangely intriguing.

How many local HD channels do you get?
From how far away?

RE: Disingenuous
By MadDogMorgan on 5/18/2011 7:55:28 PM , Rating: 3
"Netflix isn't "gobbling" anything. This is people making a choice of how and when to use services they are paying for."

Your statement is so incredibly right on.
Netfix has become the whipping boy for increased bandwidth usage. Probably as you say, because the ISP's, dare I say "comcast", are competing with them. Netflix is simply providing a service we want to buy. What's going to happen when RedBox, etc. start delivering movies on demand. This is another good reason we don't want our legislators to allow content-aware throttling. You think comcast just MIGHT throttle netflix and allow it's own on-demand service to have priority?

RE: Disingenuous
By Captain Orgazmo on 5/19/2011 12:36:13 AM , Rating: 2
In Canada, rather than competing, the telecom companies (2 cable and 2 phone companies who hold regional monopolies, and control the infrastructure which all of their and other ISPs must use) are trying to implement usage based (per-gigabyte) billing to choke off netflix and others while pushing their own vastly overpriced and inadequate IPTV and on-demand offerings. They would like to charge around $1 per gigabyte, at a cost to them of 1-3¢ per gig.

In the past decade I have seen Shaw Cable internet speeds barely increase (5 Mbit to "15" Mbit now), monthly data caps stay the same (60GB is a joke), and prices rise at double inflation with zero justification. Meanwhile their earnings are record, with 3 of the top 5 highest paid executives in Calgary being from Shaw (for a city headquartering dozens of enormous oil and mining companies this is unbelievable).

I generally hate government intervention into the economy, but the internet has become so important, and the market so uncompetitive that something has to be done.

RE: Disingenuous
By Reclaimer77 on 5/19/2011 1:09:13 PM , Rating: 2
Socialism in Canada? *gasp* Say it isn't so!

RE: Disingenuous
By Captain Orgazmo on 5/19/2011 3:32:32 PM , Rating: 2
I'm not sure how socialism fits into this discussion... but OK.

"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain

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