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What if Netflix Isn't a Loser?

http://www.fool.com/investing/general/2012/11/08/what-if-netflix-isnt-a-loser.aspx

Rick Aristotle Munarriz
November 8, 2012

Things have been rough for Netflix (Nasdaq: NFLX  ) since peaking last summer, but it's as popular as ever.

Sandvine -- a provider of network policy control solutions -- is out with its latest update on streaming trends. The gem in the data is that Netflix is still accounting for nearly a third of North American downstream traffic during the peak period between 9 p.m. and midnight.

Let's put this into its proper perspective by comparing Netflix to the other popular choices for streaming video at home.

  • Netflix: 32.9%
  • YouTube: 14.8%
  • Amazon.com (Nasdaq: AMZN  ) :
  • Facebook (Nasdaq: FB  ) : 1.5%
  • Hulu: 1.1%
  • HBO Go: 0.5%

Still the one
Now there are plenty of nuggets in the numbers.

For starters, even though Netflix is doing a good job of talking up Amazon.com, Hulu, and Time Warner's (NYSE: TWX  ) HBO as rivals, it's not even close. Netflix is serving up 18 times more content to North American homes than Amazon. The disparity gets even more ridiculous when comparing Netflix to Hulu or HBO's online platform.

We can also dismiss Google's (Nasdaq: GOOG  ) YouTube and Facebook, at least as the comparison relates to Netflix. These sites are serving up free user-generated content. It should be comforting for YouTube to know that it's serving up 10 times the content as Facebook's fast-growing video platform, but these companies aren't really bent on pushing premium video services -- at least not yet.

Back to Netflix: Keep in mind that the leading video service