Monday, March 28, 2011

Now Playing: Netflix The Bandwidth Hog

It turns out that Netflix Instant, their movie streaming service, now accounts 20% of peak U.S. bandwidth usage.  More shockingly (or maybe not so) is 43% of prime time bandwidth (8:00-10:00 pm) consumption in the U.S. is streaming media.  If this trend continues, and there is no reason to think it won't, then this will have a dramatic impact on traditional media outlets.  More importantly it will affect both traditional and Internet broadcast marketing spend.  Now advertisers will have to be more strategic with where they buy their advertisements (marketing analytics anyone).  Meanwhile, online operators like Netflix, Hulu, iTunes, and others will need to ensure their business models are financially solid while not alienating customers.

Read the article.

(submitted by Tom)

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