Netflix Dominates Video Streaming: There Will Be Blood

15.03.2011
No wonder everybody's gunning for . The video-streaming service is more popular than many of us imagined. A new study by market research firm shows that Netflix's share of streamed or downloaded digital movies was a competition-crushing 61 percent between January and February 2011.

Yes, Netflix streams 6 out of every 10 digital movies. And its competitors? Comcast is a distant second with a tiny 8 percent of the market. The rest of the also-rans include Apple, DirecTV, and Time Warner, all tied for third at 4 percent.

It's no secret that home Internet providers don't care for Netflix's popular all-you-can-stream video service. AT&T, Comcast, Time Warner, and the rest of the ISP posse feel that Netflix is getting a free ride on their data networks. An October 2010 report by Canadian broadband equipment supplier Sandvine didn't help matters much when it stated that during peak hours, and is most active between 8 to 10 p.m.

Adding insult to injury is the fact that Netflix' 20 million or so subscribers are less likely to rent movies and TV shows from the cable and satellite guys' on-demand services. Ouch.

Revenge of the ISP

ISPs are fighting back with data caps, which will no doubt impact even moderate Netflix users. Beginning in May, AT&T's DSL and U-Verse customers will have of 150GB and 250GB, respectively. Time Warner has launched trial programs with data caps and overage fees in some markets, but public outcry has caused it to , at least for now. caps monthly data usage at 250GB.