ibc_ibc 31/08/2014 13:18 Page 8
US cord cutters gobble up data
indings
from
Global
Internet
Phenomena
Report 1H2014,
released by
intelligent
broadband
network
solutions
specialist
Sandvine, reveal
that North
American
subscribers who
exhibit cord cutting behaviour are
dominating network usage, consuming
on average 212GB a month, more than
seven times the 29GB of a typical
subscriber, and that in the UK and
Ireland, Netflix is now the second
largest source of traffic during the
peak evening hours.
The report contains findings from fixed
and mobile networks around the world,
including:
On Demand Video
North American subscribers who exhibit cord
cutting behaviour (top 15th percentile of
video users) are dominating network usage:
l Consuming on average 212GB a month,
more than seven times the 29GB of a
typical subscriber
l Viewing the equivalent of 100 hours of
video each month
F
l Accounting for the majority (54%) of
total monthly network traffic
l In United Kingdom and Ireland, Netflix
is now the second largest source of traffic
Asia Pacific OTT to
surge to $10bn
Asia Pacific online TV and
video revenues (over fixed
broadband networks) will
reach $10.19 billion in
2020; a huge increase from
the $0.54 billion recorded in
2010 and $2.68 billion in
2013, according to a report
from Digital TV Research.
The OTT TV sector is on the
brink of a huge take-off for
the 14 countries covered in
the Asia Pacific Online TV &
Video report as key players
14 ADVANCED TELEVISION
during the peak evening hours, accounting
for over 17.8% of downstream fixed access
traffic
l The availability of high bitrate Super
HD content to all Netflix subscribers in
North America increased Netflix’s peak
downstream traffic share from 31.6% to
34.2%. Amazon Instant Video continues to
gain share, but still only accounts for 1.9%
of downstream traffic
Messaging
l Snapchat generates more traffic than
any other third-party messaging app on
North American mobile networks, and on
one network accounted for an astonishing
12% of total traffic on New Year’s Eve
l On an African mobile network where
the majority of subscribers have talk and
text plans, WhatsApp accounts for over
23% of traffic due to the introduction of a
low-cost, unlimited access plan for the
service that is designed to drive data
adoption
l On several LTE networks in Asia, third-
expand internationally,
broadband penetration
increases and as new
partnerships are announced
almost on a daily basis.
Online TV and video
advertising has been the key
driver for the OTT sector,
with revenues of $1.69
billion expected in 2014, up
from $0.33 billion in 2010.
Rapid advertising
expenditure growth will
continue, to reach $4.61
billion in 2020. China will
contribute $1.96 billion to
the 2020 total, with Japan
party messaging
apps such as Line or
WeChat are used by
over 40% of mobile
subscribers each
hour.
Live Streaming
l Twitch.TV, a live
streaming service
where video gamers
watch each other
play, has established
itself among the top15 applications on
many fixed networks
across the globe, and
now generates more
traffic than HBO GO
on US networks
l During the World
Cup, live streaming of matches is
predicted to account for over 40% of
network traffic on some Latin American
mobile networks
“Just over two years after its launch,
Netflix has become the second largest driver
of traffic on fixed access networks in the UK
and Ireland,” said Dave Caputo, president
and CEO, Sandvine. “This rapid ascent
underscores how important it is that
operators have business intelligence solutions
in place to accurately measure and monitor
the impact that over-the-top services have on
their networks.”
“While the app of choice varies drastically
between continents and countries, this latest
report makes it clear that mobile messaging
matters,” said Caputo. “To remain
competitive in the marketplace, mobile
operators must be able to create and
implement innovative service plans rapidly in
order to meet the ever-changing demands of
subscribers and combat declining SMS
revenues.”
supplying a further $1.20
billion – these two countries
will provide two-thirds of
the region’s total.
Online television and
video subscription revenues
(SVoD) will soar from $110
million in 2010 to $1.272
billion in 2014 and onto
$3.493 billion in 2020.
Japan will lead the SVoD
sector by a long way, with
revenues of $1,927 million
in 2020 – or 55% of the
region’s total.
Online TV and video
rental/pay-per-view
revenues will expand
rapidly, climbing from $36
million in 2010 to $804
million in 2020. Downloadto-own revenues are
forecast to be $1,283
million in 2020, up from
only $58 million in 2010.
The number of homes
paying a monthly
subscription to receive SVoD
packages will climb from
2.27 million in 2010 (0.3%
of TV households) to 14.49
million by end-2014 (1.8%)
and onto 53.41 million in
2020 (6%).