Netflix Benefits as Cord-Cutter Ranks Swell

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By Trey Thoelcke Published
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Netflix Inc.’s (NASDAQ: NFLX) share of fixed-line Internet traffic in North America has grown to 34% of data flowing to consumers during peak times, according to a new report from networking services company Sandvine. That was up from just 32% in 2013.

Amazon.com Inc.’s (NASDAQ: AMZN) instant streaming also gained share but only accounted for 1.9% of downstream traffic. Google Inc.’s (NASDAQ: GOOG) YouTube had a 13.2% share, while Facebook Inc.’s (NASDAQ: FB) share of this traffic was about the same as Amazon’s.

It was a different story when it comes to traffic on mobile networks in North America. YouTube leads with about 17.3% of aggregate mobile traffic, followed by Facebook at 14.7%. Netflix’s share was only about 4.5%.

Sandvine also identified the likely so-called cord cutters, or consumers who have dropped traditional pay TV for Internet options. They were the top 15% heaviest users of streaming audio and video, and they accounted for 54% of all Internet traffic.

READ MORE: Will Netflix Price Increase Kill Growth?

Furthermore, Sandvine found that file-sharing had fallen to 8.3% of all daily network traffic. File-sharing is often considered the main tool of content piracy, and in 2008 it accounted for 31% of daily traffic.

Some other findings of the “Global Internet Phenomena Report” include:

  • Netflix has become the second largest source of traffic in the United Kingdom during the peak evening hours.
  • Snapchat generates more traffic than any other third-party messaging app on North American mobile networks. On one network it accounted for 12% of total traffic on New Year’s Eve.
  • Live streaming of World Cup matches is expected to account for more than 40% of network traffic on some Latin American mobile networks.

Sandvine publishes its Global Internet Phenomena Reports twice a year. According to the provider of broadband network solutions for fixed and mobile operators, the report: “examines a representative cross-section of the world’s leading fixed and mobile data providers using real-life, subscriber-anonymous network data to provide unparalleled insight into the happenings on consumer data networks.”

READ MORE: The Nine Most Misleading Product Claims

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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