Will The $7.99 Unlimited Streaming Netflix Deal Ruin The Internet?

Netflix represents more than 20% of downstream Internet traffic during peak times in the U.S. — and is heaviest in the prime time hours of 8 to 10 p.m., according to a new report from bandwidth management equipment vendor Sandvine. This report was published before the announcement of the $7.99 plan for unlimited streaming of your favorite TV episodes and movies into your home. If Netflix sales take off as a result of this announcement what will it do to internet traffic in general? Netflix had 16,933,000 total subscribers according to their most recent report. This represents a 52 percent year-over-year growth from 11,109,000 total subscribers at the end of the third quarter of 2009 and 13 percent sequential growth from 15,001,000 subscribers at the end of the second
quarter of 2010. At this rate Netflix is going to be a company to watch as the net neutrality with the FCC continues to get more media coverage.