Netflix has recently passed two major milestones.  First is that Netflix use is causing a reduction in illicit file sharing.  Second is that Netflix is actually sending out fewer discs than in the past.  These are both the result of the same phenomenon.

Netflix is great, but more than that…  Netflix is: Better Than Free

Netflix, at less than $10 a month, is cheap enough that everyone can get an account inexpensively, but has HD-quality streaming video that streams instantly.  It might not be 100% perfect, but it’s great.  The quality isn’t quite as good as a non-streaming option, such as an HD broadcast or blu-ray discs, but it’s better and faster than other streaming options, like YouTube, etc.

Not only great, but cheap, easy, fast, doesn’t take up room on your hard drive, and is completely legal.  It’s no surprise that it’s taking a larger share of bandwidth and pushing out illegal traffic and its own DVD/blu-ray delivery business.