Netflix to enter UK market

Netflix to enter UK market

Film and television streaming service Netflix is set to enter the UK market, stepping up competition among rivals including LoveFilm and Sky+ with the launch of a advertising campaign announcing its presence this week.

Netflix has enjoyed a huge level of success in the US, where it has more than 20 million monthly subscribers and has established contracts with a number of high-profile studios and distributors including Miramax and Lionsgate.

While this has offered consumers a new way to enjoy their favourite entertainment shows, it has also significantly increased the pressure on bandwidth use. Indeed, figures from the Internet Traffic Report last year confirmed that real-time entertainment providers are already some of the heaviest drains on bandwidth in Europe, with the media consumption of subscribers to fixed-access networks clocked at 14.7 GB in the first quarter of 2011.

Last year, this trend was largely due to the move away from P2P file sharing as consumers embraced on-demand streaming options. With Netflix's entrance to the market, this trend only looks set to grow.

However, it is likely to be a gradual growth, as Reed Hastings, chief executive of the service, noted that the venture could take more than two years to become profitable in Britain. This could be down to the high level of established competition, particularly from LoveFilm.

While this might leave investors impatient, it could afford businesses and organisations time to ensure their networks are up-to-scratch and capable of handling large amounts of video traffic as the trend is highly likely to move across into the business sector.

Managed networks and leased lines are both possible ways of handling traffic of this size and could help to keep things running smoothly as demands increase.

hSo provides managed networks designed for business. To get an instant cost for a leased line at your location, visit our online leased line price checker.