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Netflix takes over the Internet

According to a report by Sandvine, Netflix is now the largest source of internet traffic in North America during peak hours. Netflix streaming video service now accounts fro about 29% of peak traffic, overtaking P2P, Bittorrent, and Social Networking.

Network Traffic Graph

Almost half of internet traffic is Real-Time Entertainment

Internet Application Traffic Sources

Netflix accounts for 29.7% of Downtream traffic (provided by Sandvine)

These numbers show a distinct shift in media consumer behavior. More and more of people's entertainment is coming from OnDemand sources. Below is an interview with Netflix CEO given by TechCrunch talking about the future of his company. He says "Streaming is at the core of our business," and it seems that he is very much correct.

Source: TechCrunch.com

While this is great for consumers, where does it leave advertisers? The rise of on-demand media has made the time honored tradition of a "time slot" in advertising more and more obsolete.

What do you think? Is the internet going to fully replace our TVs? Is the generation that grew up with "on-demand" entertainment at their fingertips going to continue to consume media like the cable and networks provide? Where exactly do advertisers fit? We at Force 5 would love to speak with you about video opportunities, cutting edge marketing, or internet strategies to bring your brand to new customers. Just give us a call or fill out our Force 5 contact form and we will be happy to speak with you. Now pass the popcorn. . . . lets see what is on the Internet.