Sandvine Report: Netflix dominates (still), Amazon Instant Video growing

Facebook video autoplay causing major increase in average usage on fixed and mobile networks

WATERLOO, ON, Nov. 20, 2014 /CNW/ - Sandvine, (TSX:SVC) a leading provider of intelligent broadband network solutions for fixed and mobile operators, today released its latest bi-annual Internet traffic trends report, entitled "Global Internet Phenomena Report 2H 2014". The report is based on data from a selection of Sandvine's 250-plus communications service provider (CSP) customers spanning North America, Europe, Middle East and Africa, Caribbean and Latin America and Asia-Pacific.

"With both Netflix and Amazon Instant Video gaining bandwidth share in North America during 2014, it will be fascinating to see how a standalone HBOGO streaming option will impact networks when it launches in 2015," said Dave Caputo, President and CEO, Sandvine. "The dynamic streaming video market underscores how important it is that operators around the globe have the business intelligence and big data solutions in place to understand the ever-changing behavior of their subscribers."

Sandvine's Global Internet Phenomena Report 2H 2014 contains findings from fixed and mobile networks around the world, including:

Video Streaming Services

• Netflix continues to dominate North American networks, accounting for 34.9% of downstream traffic in the peak evening hours
• Amazon Instant Video has established itself as the second largest paid streaming video service in North America. While still only accounting for 2.6% of downstream traffic, its share has more than doubled in the past 18 months
• In advance of plans to start offering a standalone streaming subscriptions in the US, HBOGO accounts for just 1% of downstream traffic in the region
• On a fixed network in Australasia, where Netflix isn't even available yet, approximately 2.5% of subscribers are accessing the service and it comprises as much as 4% of peak downstream traffic

Other Applications

• Facebook's introduction of video autoplay saw average subscriber usage increase by as much as 60% on mobile networks and over 200% on fixed networks in the past year
• As a percentage of traffic, Filesharing traffic continues to decline globally in almost all regions except Asia-Pacific, where it still accounts for more than 33% of total traffic
• In Latin America, contrary to our own predictions, World Cup streaming on some mobile networks accounted for just 10% of traffic. Apparently, consumers still prefer to view major sporting events on television, with mobile devices as a backup
• Apple's iOS 8 launch in September saw the software update account for over 12% of peak traffic on one Middle Eastern fixed access network

Check out Sandvine's Internet Phenomena blog on a regular basis for the latest trends, predictions and phenomena impacting Internet usage around the world.

GLOBAL INTERNET PHENOMENA REPORT METHODOLOGY
Sandvine's Global Internet Phenomena Reports are based on a representative cross-section of Sandvine's data from a selection of Sandvine's 250-plus customers spanning North America, Europe, Middle East and Africa, Caribbean and Latin America and Asia-Pacific. Data is gathered over a one-month period and is completely subscriber-anonymous. No identifiable information of any kind, including IP addresses are collected during the study. Sandvine's network equipment analyzes data from an application utilization level and is not content aware.

ABOUT SANDVINE
Sandvine's network policy control solutions add intelligence to fixed, mobile and converged communications service provider networks to enable services that can increase revenue and reduce network costs. Powered by Sandvine's Policy Engine and SandScript policy language, Sandvine's networking equipment performs end-to-end policy control functions including traffic classification, and policy decision and enforcement across the data, control and business planes. Sandvine's products provide actionable business insight, the ability to deploy new subscriber services and tools to optimize traffic while enhancing subscriber Internet quality of experience.

Sandvine's network policy control solutions are deployed in more than 250 networks in over 90 countries, serving hundreds of millions of data subscribers worldwide, www.sandvine.com.

FORWARD-LOOKING STATEMENTS
Certain statements in this release which are not historical facts constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements") and are made pursuant to the "safe harbour" provisions of such laws. Statements related to potential benefits of, and demand for, Sandvine's products are forward looking statements which are subject to certain assumptions, risks and uncertainties that may cause the actual results, performance or achievements of Sandvine to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on such statements. Such forward-looking statements involve both known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Sandvine to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. These risks and uncertainties include, without limitation, changes in internal deployment strategies or plans by specific customers; the growth of broadband internet usage and levels of capital spending on broadband network management systems; the timing of orders and manufacturing lead times; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; increased competition in the broadband network equipment industry; dependence on the timely development and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks including dependence on key suppliers and key technologies; dependence upon indirect channel sales and resellers;  factors such as business and economic conditions and growth trends in the broadband network equipment industry and in various geographic regions; global economic conditions and uncertainties in the geopolitical environment including the impact of regulation related to the internet and the delivery of internet services. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and Sandvine does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change, except to the extent required by applicable law.

SOURCE: Sandvine

INVESTOR CONTACT: Rick Wadsworth, Sandvine, [phone] ext. 3503, [email protected]; MEDIA CONTACT, Dan Deeth, Sandvine, [phone], [email protected]