Netflix's Traffic Problem Is Good for Big Cable


According to a recent study, Netflix continues to account for about one-third of all traffic on broadband networks in North America. Investors used to look at this as a potential threat to Netflix because it could lead to pricing bouts with network providers. Today, it's looking like an opportunity for broadband companies. In this video, Fool contributor Steve Heller sits down with Erin Miller to discuss how Netflix's traffic has created higher demand for broadband and why that's a good thing for providers.

The tumultuous performance of Netflix shares since the summer of 2011 has caused headaches for many devoted shareholders. While the company's first-mover status is often viewed as a competitive advantage, the opportunities in streaming media have brought some new, deep-pocketed rivals looking for their piece of a growing pie. Can Netflix fend off this burgeoning competition, and will its international growth aspirations really pay off? These are must-know issues for investors, which is why The Motley Fool has released a premium report on Netflix. Inside, you'll learn about the key opportunities and risks facing the company, as well as reasons to buy or sell the stock. The report includes a full year of updates to cover critical new developments, so make sure to click here and claim a copy today.

The article Netflix's Traffic Problem Is Good for Big Cable originally appeared on

Fool contributor Steve Heller owns shares of Google. Erin Miller has no position in any stocks mentioned. The Motley Fool recommends Google and Netflix. The Motley Fool owns shares of Google and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.