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Sandvine Report Sees Rise in OTT, Mobile Markets, Web Devices

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Broadband networks solutions provider Sandvine has released its fall 2011 Internet Phenomena Report, offering details and analysis on the increased use of Netflix and other over-the-top streaming services, the market penetration of revenue-replacement applications, the increase in mobile marketplaces, and a growing impact from connected consumer electronic devices.

The report finds that in U.S. fixed networks, real-time entertainment applications are putting heavy demands on network capacity. They account for 60 percent of peak downstream traffic, up from 50 percent a year ago. The majority of that is adaptive bitrate video. Netflix made up 32.7 percent of peak downstream traffic, a 10 percent increase since the spring.

As far as entertainment goes, the report says, we're in the post-PC era. The majority of real-time entertainment traffic (55 percent) is going to game consoles, set-top boxes, connected TVs, and mobile devices. Only 45 percent streams to desktop and notebook computers.

The report also quantifies the rise in mobile video. In North America, 32.6 percent of peak downstream traffic on mobile networks is for real-time entertainment. Here the largest source is YouTube, although Netflix is growing.

"The fact that more video traffic is going to devices other than a PC should be a wake-up call that counting bytes is no longer sufficient for network planning. Communications service providers need to have detailed business intelligence on not only the devices being used but also the quality and length of the videos being watched so they can engineer for a high subscriber quality of experience and not simply adding capacity through continuous capital investment," says Dave Caputo, CEO of Sandvine.

Those interested can download the full report for free. Registration is required.

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