January 7, 2016

Internet traffic is about to go bonkers everywhere

Happy New Year!

And yes, in other news, Netflix just announced that it has gone global and is launching its service in 130 countries. #netflixeverywhere

Everywhere consumers are rejoicing. More freedom, more choices.

Elsewhere, internet providers, telcos, and cable companies are crying. 

Internet traffic is about to get a huge bump in many of these markets as consumers shift from traditional cable subscriptions to streaming services like Netflix. This means many internet providers still providing "unlimited data" will soon be suffering backlash as they realize they need to shift their models to pay per use.

Telcos will see a similar bump in traffic as majority of consumption will likely be on mobile phones. Many telcos already have data caps and charge extra (or reduce speed) when consumers exceed their data plans. In a very competitive landscape, telcos will have to compete for consumers on either price or service quality. My bet is that service quality wins long term.

Cable companies, well, let's just say people can now get the same content, on-demand, at a cheaper price point.

Now, let me take a few minutes to sign up for Netflix's free one month trial. :-)