Yahoo Finance Netflix uses an astounding amount of the world's internet
“Stranger Things,” “Ozark,” and “Unbreakable Kimmy Schmidt” are eating up a huge chunk of the world’s internet. According to bandwidth management company Sandvine, Netflix consumes a whopping 15% of global internet traffic.
In its “2018 Global Internet Phenomena Report,” Sandvine remarks that this figure is particularly impressive amid steep and ever-increasing competition for users’ attention and screen time from gaming, social networking platforms, and other streaming sites, such as Hulu, HBO Go, and Amazon Prime, among others. Netflix also benefits from being part of the unlimited video streaming bundle that many mobile companies offer their customers, the report stated.
Room to run
Goldman Sachs suggests things will only get better for Netflix and states that the consensus underestimates the company’s future growth.
“Our 12-month price target of $470 reflects our view that Netflix can reach approximately 300 million subscribers over the next five years,” it stated in a note recently. It predicts that Netflix’s audience will continue to grow as it shifts from TV and in-home to increasingly mobile-first markets like India.
“We believe the earlier stage markets — where mobile is the more dominant platform, data costs are declining more rapidly … and the entertainment landscape is less competitive — represent massive subscriber opportunities for Netflix. While many markets across Asia, Latin America, Eastern Europe, and other parts of the world fit this description, we view India as a proxy for the impact these forces will have on subscriber growth.”
Goldman attributes Netflix’s success in India, in part, to its creation of local content. After its July release of “Sacred Games,” its first series written and produced for an Indian audience, downloads of the Netflix app spiked four times, month over month. The thriller, based on Vikram Chandra’s novel of the same name, was recently renewed for a second season.
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