Netflix now holds the title of the biggest source of internet traffic with nearly 30 percent of broadband traffic during peak hours. Analytics company, Sandvine, which sells network services software to ISPs, reported the news in their Spring traffic report 2011. The video streaming giant even surpassed peer-to-peer file sharing, which has historically been tough to beat.

The interesting part of this new stat is not simply that Netflix is “winning the race”, but that for the first time the largest source of internet traffic is paid for.  This mean ‘buku’ bucks for Netflix and its advertisers.

Competitive internet search providers see it differently, however. They are arguing that TV shows and movies streamed from Netflix online are an overwhelming burden on their networks. Some companies (AT&T in particular) are even considering changing their price points depending on each user’s GB usage.

Unfortunately for those of you who are avid Netflix viewers, this might be the future in internet bills for you. Yesterday, the Washington Post reported that the “data will surely stoke the debate on usage-based pricing for Internet consumption, which companies like Netflix–with 23 million users– warn could curb consumer appetites for watching streaming video online.”

Nonetheless, an unlimited month of TV and video viewing per month cost just $9 as of now. How can cable compete with that?

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