Internet users love Netflix, Inc. (NASDAQ:NFLX). A recent study from Sandvine shows us that Netflix takes about 33 percent of all the downstream traffic in the North America during peak hours of 9:00 pm to 12:00 am.
By comparison, Amazon only garners 1.8 percent of traffic and Hulu garners 1.4 percent. Interestingly enough, this study indicates that audio and video streaming services make up 65% of all traffic during peak hours. Netflix, Inc. (NASDAQ:NFLX) accounts for about half of that. Sandvine’s results also show that overall monthly data rates have increased over 120 percent from 23GB to 51GB.
For this survey, Sandvine collected a month’s worth of traffic data from over two hundred customers throughout the world. Sandvine also expects that Netflix will grow and dominate. They also predict that the popular video streaming/movie rental service will generate twice the amount of bandwith of YouTube and ten times the number of their competitors.
Carl Icahn, an activist investor, purchased ten percent of Netflix’s shares, which is a major cause of concern for the company as they fear a hostile takeover. Netflix, Inc. (NASDAQ:NFLX) is now taking matters into their own hands by gearing up for a battle of their own.
Despite doubts, Netflix, Inc. (NASDAQ:NFLX) is holding on strong. It’s evident that the company has to now prove themselves to either fight Icahn or work with him. This will prove to be a big opportunity for the company and may either make or break their standing with investors. Even though they’ve got a lot riding on their backs, I think they will make it work. It’s going to get interesting to see how Netflix’s CEO Reed Hastings will handle the entire situation. The good news is that I don’t think there is too much to worry about, as Netflix, Inc. (NASDAQ:NFLX) offers a service that’s in high demand, and I don’t think that’s going to change anytime soon, at least as long as Hastings remains in control.
