Is Netflix Behind 40% Internet Usage Spike In Australia?

Is Netflix Behind 40% Internet Usage Spike In Australia?
NFLX Photo by Matt Perreault

Netflix is known for its ability to create binge-watchers, and it seems it has dome so in Australia as Internet usage in the country has grown sharply since the U.S. firm made its debut in the region.

Netflix effect on data consumption

New data from the Australian Bureau of Statistics shows that internet usage spiked in Australia in the last six months, which coincidentally is around the same time when Netflix entered Australia, i.e. in March, says a report from Gizmodo Australia.

Fund Manager Profile: Kris Sidial Of Tail Risk Fund Ambrus Group

invest Southpoint CapitalA decade ago, no one talked about tail risk hedge funds, which were a minuscule niche of the market. However, today many large investors, including pension funds and other institutions, have mandates that require the inclusion of tail risk protection. In a recent interview with ValueWalk, Kris Sidial of tail risk fund Ambrus Group, a Read More

The latest data from the Australian Bureau of Statistics covers the period between June 2014 and June 2015. Comparing the data consumed by the fixed-line broadband users in June 2014 versus June 2015, it was found that data consumption grew by a striking 40%. Similarly, when the volume of data downloaded in the three months ending June 30, 2015 is compared with the three months ending December 31, 2014, the increase is found to be 21%. It is a sharp jump, and most likely it has come from all the new Netflix users across Australia.

Reports regarding Netflix taking a toll on the country’s internet infrastructure started surfacing as early as April, says Digital Trends. A report in the Sydney Morning Herald claimed that Netflix accounted for 50% of the Internet service providers’ traffic while the Australian reported that broadband traffic has doubled between March and September because of the streaming service.

Advice for countries on Netflix’s expansion list

It is not that surprising to see that Netflix can have such a huge impact on the Internet usage of a country. A report from Variety in May, citing a Canadian bandwidth-management systems vendor named Sandvine, said that Netflix accounted for 34.5% of downstream bandwidth usage in prime-time hours.

Australia is facing rising number of complaints regarding slowing Internet speeds due to the increase in traffic. Netflix is continuing its global expansion, and it is advisable for countries where Netflix will soon arrive to prepare their infrastructure to accommodate a significant increase in the traffic. At present, Netflix is available in 80 countries, and the U.S. firm aims to expand to 200 countries within the next two years.

In pre-market trading on Thursday, Netflix shares were down 0.51% to $107.55.

No posts to display