As we reported in our Fall 2011 Internet Phenomena Report, 55% of all Real-Time Entertainment traffic in the United States now goes to devices other than PCs. By far the biggest driver of that traffic is Netflix, which users can access on tablets, smart TVs, set-top boxes, and game consoles.
Examining data from Sandvine’s Netflix Rising report released in the Spring, the Xbox 360 accounts for almost 25% of Netflix’s total traffic on fixed access networks. This figure demonstrates that subscribers are more than willing to use their Xbox 360 as an entertainment hub and the list of video providers made available to them on that device is set to grow substantially.
Beginning today, Microsoft will be rolling out a software update that will offer Xbox 360 owners (at least, those who pay $60 a year to be Xbox Live Gold members) access to a wide range of both on-demand and live video content on their TV .
IPTV is not a new feature on the Xbox, as Microsoft had some limited partnerships with select communications service providers and channels such as ESPN. With this software update however, Microsoft is making an even bigger push by forming partnerships with some Internet and media heavy-hitters such as Verizon, HBO, BBC, Rogers, and YouTube, just to name a few.
Access to certain content will differ based on country and Internet provider due to licensing restrictions, but Microsoft is certainly trying to have the Xbox 360 be the one-stop shop for all of your home entertainment needs, and the only device you need connected to your TV.
With over 57 million Xbox 360s sold worldwide to date, how many of them are on your network? The number of owners and the number of soon-to-be-available live streaming options will present unique challenges to network operators. Live video demands a high Quality of Experience (QoE), and traffic optimization options such as caching are limited for live video. Operators will need to ensure their networks are engineered for quality because, while the Xbox may be among the first devices to offer a wide range of live streaming video, it is unlikely to be the last.
We will be keeping a close eye on how users adopt this new service, and will aim to bring some insightful data on subscriber usage the near future.

