Uncommon Wisdom

May 18 2011   10:48PM GMT

Market alert: Netflix now N.A.’s top source of downstream traffic

Tom Nolle Tom Nolle Profile: Tom Nolle

Netflix has been named the number one source of downstream traffic in all of North America, accounting for just under a third of all bandwidth consumed. Obviously, that means that video accounts for the overwhelming majority of downstream traffic, since there are many other sources than Netflix.

This only further highlights the problem that network operators face. Not only are they being asked to capitalize increased traffic that their current all-you-can-eat pricing model doesn’t monetize, they’re subsidizing the cannibalization of their own TV revenue opportunity. That’s particularly true for the cable MSOs whose primary revenue stream has always been TV. The markets are getting close to breaking here.

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