By : Erik Gruenwedel | Posted: 27 Oct 2010
In a potential blow to broadcasters, cable and satellite operators, Netflix streaming accounts for 20% of Internet video activity during prime-time television viewing, according to a new report.
In its fall 2010 Internet usage report, Canadian-based Sandvine reported that in the United States, Netflix represents more than 20% of downstream traffic during peak times and is heaviest from 8 p.m. to 10 p.m.
Prime-time TV viewing typically represents the period for first-run episodic programming, peak household penetration, and accompanying media buys and advertising rates.
Netflix streaming usage bested YouTube at 9.85% of downstream traffic, BitTorrent (8.39%), Flash video (6.14%), iTunes (2.58%), Facebook (2.44%), Gnutella (2.12%) and Xbox Live (1.61%).
The report found that 10% of Netflix subscribers frequented its Canadian stream-only service during the first week of the service’s Sept. 22 launch, surpassing YouTube usage during the same period.
“Within a few days of launch in Canada, Netflix attained shocking levels of success and has no doubt caused alarm among the country’s service provider community,” the report said.
During its recent financial call, Netflix CEO Reed Hastings said the service had transitioned into a streaming platform that also rents physical discs.
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