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A study published Tuesday by Sandvine Inc. shows that Netflix movies and TV shows account for nearly 30 percent of traffic into homes during peak evening hours, compared with less than 17 percent for Web browsing.
Only about a quarter of homes with broadband subscribe to Netflix, but watching movies and TV shows online takes up a lot of bandwidth compared with Web surfing, email and practically every other Internet activity except file sharing and videoconferencing.
As late as last year, both Web surfing and peer-to-peer file sharing — mainly the illegal trading of copyrighted movies — were each larger than Netflix's traffic.
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Miramax and Netflix have signed a multiyear content deal, the companies announced today.
Starting next month, "several hundred" Miramax movies, including "Pulp Fiction," "Shakespeare In Love," and "Good Will Hunting," will be made available on Netflix's streaming service in the U.S. The deal marks the first time that Miramax has ever brought its content to a digital subscription service, the company said.
"From day one, we've been very clear about the importance of digital and our desire to respond to the significant pent-up demand for our films--delivering to consumers whenever and wherever they want," Miramax CEO Mike Lang said in a statement. "This agreement is an important first step in our digital strategy."