Netflix and YouTube? Aim to be the new Google?
The video viewing is growing worldwide. When the Internet entered our lives, seekers soon become prominent, now that role is assumed by the moving image. YouTube and Netflix are ahead. Only a few years ago the search engines, especially Google, took a leading role on the Internet, but today moving images have managed to conquer users worldwide.
A sample that is that Internet users consume 4 billion hours of video per month only on YouTube. Currently, in the United States, over 50% of Internet traffic is represented by Netflix and the famous video portal. Sandvine data that have been collected by BBC World , indicate that the movie site represents 31.62% of the traffic, leaving enough behind Google (18.69%).
In Latin America, the trend is similar. The 36.82% of the traffic in this part of the world corresponds to YouTube. Netflix, of course, does not have such popularity and wants to increase 2.7% representing traffic.
To achieve this, is taking aggressive actions in Latin America. One of them is to offer free trial accounts to potential customers for a given time to try to convince them to subscribe to the platform. However, there is a downside called ‘bandwidth’. According to an article from the BBC BBC , Netflix recommends 5mbps have to watch videos in HD and 3 mbps to see quality video DVD .
ECLAC states that “only in Chile just over 10% of Internet users have connections above 4 mbps. In the other countries in the region more than 90% of users have a broadband connection below 4 mbps. In countries like Bolivia and Venezuela the most popular connection is less than 256 kbps. ” Despite this infrastructure, the region is consuming a high amount of online videos. Consequently, only Netflix was able to increase traffic by 20% in six months, which may be due to its aggressive pursuit of new subscribers.
Because it is a free service, YouTube is the preferred site for watching videos America America, where moving images, in general, represent 45% of Internet traffic. The video has been crowned as the favorite in the entire region. To get an idea of this, a Chilean consumes on average 128 online videos a month, a Mexican, 103, and an Argentine, 86. The challenge then is in the ‘bandwidth’.