Sandvine Report: Netflix’s Encoding Optimizations Result In North American Traffic Share Decline
Cloud Storage Surpasses Filesharing as Largest Source of Upstream Traffic
Waterloo, ON; June 22, 2016 – Sandvine, (TSX:SVC) a leading provider of intelligent broadband network solutions for fixed and mobile operators, today released its latest Global Internet Phenomena Report focusing on Latin America and North America. The report is based on data from a selection of Sandvine’s 300-plus communications service provider (CSP) customers.
Sandvine’s Global Internet Phenomena Report: Latin America & North America contains findings from both fixed and mobile networks, the highlights of which include:
- Netflix represented 35.2% of traffic on North America fixed networks. While this was a modest decline from the 37.1% of traffic it represented six months ago this change is likely the result of improvements by Netflix to better compress their video library. Even with these improvements in streaming efficiency, Netflix’s traffic share on fixed networks in Latin America increased from 6.6% to 8.3%.
- Amazon Video is now the third ranked downstream application (up from eighth a year ago) in North America, accounting for 4.3% of fixed traffic. Sling TV now appears among the top 20 applications on most US networks, but still accounts for less than 1% of traffic.
- Streaming audio and video now accounts for 71% of evening traffic in North American fixed access networks. Sandvine expects this figure will reach 80% by 2020.
- Cloud Storage (Dropbox, iCloud, Google Drive, etc.) has surpassed Filesharing as the largest source of upstream traffic during peak period on North American fixed access networks. BitTorrent now accounts for less than 5% of total daily traffic in the region.
- The addition of video and voice calling is driving growth in Communications apps on mobile networks in both Latin America and North America. In Latin America, WhatsApp traffic share is now 7.4%, more than triple what it was two years ago.
- In Latin America, Facebook and Google account for over 70% of total mobile traffic in the region, this is up from 60% reported last year.
- Over 60% of mobile traffic in both Latin America and North America is now encrypted and Sandvine predicts some networks will surpass 80% this year.
“Netflix’s decision to optimize their entire video library will yield benefits for both subscribers and operators,” said Dave Caputo, CEO, Sandvine. “Netflix’s optimizations means they can deliver more hours of video using less bandwidth, which results in lower data consumption for subscribers, and decreased capacity-related costs for operators.”
Check out Sandvine’s Internet Phenomena blog on a regular basis for the latest trends, predictions and phenomena impacting Internet usage around the world.
GLOBAL INTERNET PHENOMENA REPORT METHODOLOGY
Sandvine’s Global Internet Phenomena Reports are based on a representative cross-section of Sandvine’s data from a selection of Sandvine’s 300-plus customers spanning North America, Europe, Middle East and Africa, Caribbean and Latin America and Asia-Pacific. Data is gathered over a one-month period and is completely subscriber-anonymous. No identifiable information of any kind, including IP addresses are collected during the study. Sandvine’s network equipment analyzes data from an application utilization level and is not content aware.
Sandvine’s network policy control solutions add intelligence to fixed, mobile and converged communications service provider networks, to increase revenue, reduce network costs and improve subscriber quality of experience. Our networking solutions perform end-to-end policy control functions, including traffic classification, policy decision and enforcement. Deployed as virtualized network functions or on Sandvine’s purpose built hardware, the products provide actionable business insight, and the ability to deploy new consumer and business subscriber services, optimize and secure network traffic, and engage with subscribers.
Sandvine’s network policy control solutions are deployed in more than 300 networks in over 100 countries, serving hundreds of millions of data subscribers worldwide. www.sandvine.com.
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