Netflix demand is continuously increasing, and at a brisk pace. Now the SVOD service accounts for about 37%, up almost 2% since November, of the total bandwidth consumed by internet users during prime time in North America, according to a report by Canadian network firm Sandvine.
Netflix accounting for more internet traffic
The latest findings also declared that the premiere of the 5th season of Games of Thrones and the availability of Call of Duty’s latest download content have led to a great increase in data consumption lately.
Online video and streaming services have become increasingly popular in the past few years. In the last quarter of 2014, Netflix witnessed an increase of 4 million subscribers, which now total more than 57 million globally.
In addition, Sandvine suggested that Netflix and YouTube already claim more than 50% of the net bandwidth used in North America. In addition, almost 40% of U.S. homes now subscribe to at least one of the SVOD services available, as reported by Nielsen.
Moreover, some recent speculations suggest that the growing trend of streaming videos online is most likely to continue. Contemplating Netflix’s future, Brian Fung (a tech reporter for a blog for The Washington Post) claimed that the SVOD service is headed toward acquiring two-fifths of internet traffic, which was about one-third earlier. Further, a Cisco report on the future of the internet indicates that video will make up 80% of the world’s internet traffic in the next four years.
Are pay-TV’s days numbered?
Over the years, streaming services have considerably affected live TV viewing and pay-TV companies. Last year, almost 125,000 users of pay-TV unsubscribed to the service, claims New Hampshire-based media firm Leichtman Research Group.
Moreover, it was concluded that adults in the U.S. devoted less than five hours per day towards consuming live TV in 2014, a decline of 13 minutes from the year earlier. Though all this data might suggest that cable TV is nearing its end, Nielsen opined that the majority of users who have SVOD, broadband and cable are more likely to prefer cable over the other services.
Also the growing number of users puts more weight on SVOD companies to provide optimum streaming services. Last year, Netflix signed controversial agreements with Comcast and three other American ISPs to ensure best-quality streaming services to its customers.