Netflix Dominates Web Traffic as Cord Cutters Gobble Data (PCMagazine)

• BY STEPHANIE MLOT
•   MAY 14, 2014 

Netflix continues to dominate North American Internet usage, with the streaming-video service eating up 34.21 percent of peak downstream traffic, according to a new report from Sandvine.

For comparison, Amazon Prime Instant Video only accounts for 1.9 percent of peak traffic. Meanwhile, Twitch.tv - which lets gamers broadcast and watch others players' sessions - generates more traffic in the U.S. than HBO GO.

Sandvine examined how many of these streaming-video users were "cord cutters" - or viewers who don't subscribe to cable and rely primarily on services like Netflix, Hulu, or Amazon for their movie and TV needs. Not surprisingly, those who identify themselves as cord cutters consume much more data than those who are not.

Typical cord cutters average about 100 hours of streaming video each month, compared to nine hours among non-cord cutters, Sandvine found. The mean monthly usage among cord cutters, meanwhile, was at 212GB compared to 29GB for typical subscribers. That means cord cutters consume about 72 percent of the streaming share, while non-cord cutters make up about 45 percent.

"That may seem like a shockingly high number to some," Sandvine communications manager Dan Deeth wrote in a blog post. "But in [a] home with multiple individuals, and multiple screens, it is a number that is quite easily achievable."

Mobile networks, however, have seen only minor shifts in traffic over the last six months, according to Sandvine. Mean monthly usage has jumped 8 percent, increasing from 443MB to 465MB, due in part to organic growth, but also helped along by the continued rollout of LTE across the country.

But "median usage, a figure we feel is more indicative of a 'typical user,' grew at an even faster pace by over 20 percent from 84MB to 102MB," Sandvine said. "We suspect it is driven by increasing individual usage, as first time smartphone adopters are now comfortable and unleashing the full power of their devices' technology."

And just as it does among fixed networks, real-time entertainment leads the mobile map, beating social networking and Web browsing. But messaging applications are riding in strong: Snapchat has become the leading third-party messaging service by volume, generating more daily traffic than competitors.

"While the app of choice varies drastically between continents and countries, this latest report makes it clear that mobile messaging matters," Sandvine CEO Dave Caputo said in a statement. "To remain competitive in the marketplace, mobile operators must be able to create and implement innovative service plans rapidly in order to meet the ever-changing demands of subscribers and combat declining SMS revenues."

If you're looking for something to stream, check out PCMag's roundups of The Top 50 Geeky TV Shows Streaming on Netflix, as well as The 50 Geekiest Movies Streaming on Netflix and 60 Movies, TV Shows on Amazon Every Geek Should Watch.