Online Video Stats: What Percent Of Internet Traffic Is Video?

Content on the Internet is changing at a very fast pace. We had been trying to spot quite a few stats around this changing nature of content and consumption behavior - for example, we had asked if there ever would be a Google for apps. We knew Video was a big part of current Internet Traffic - based on what he had spotted on Netflix, that Netflix alone contributes to one-third of all Internet Traffic in the U.S. So we were prepared to see some big numbers on what percentage of today's internet traffic is video - we spotted this stat, that Internet video will be more than a whopping 86 percent of all Internet traffic in the next three years. (Source)

This is not just projections - video traffic was already more than half of all Internet traffic as early as 2011 (Source)

The question therefore is this: given this changing nature of content and a definite change in consumption behavior (smaller screens) - how is your product strategy positioned to handle these dynamics? What happens when the iPhone size changes?