LRG: Fewer Netflix subscribers would consider reducing spending on pay TV
While more Netflix (Nasdaq: NFLX) subscribers are using connected TVs and devices such as gaming consoles to watch streaming video, fewer cable and satellite customers say they would consider shaving pay TV subscriptions because of Netflix, according to a report from Leichtman Research Group. 13 percent of Netflix subscribers say they would consider cutting spending on pay TV services, compared to 21 percent last year, LRG said.
38 percent of all households have at least one TV connected to the Internet via gaming consoles such as Microsoft's (Nasdaq: MSFT) Xbox and Sony (NYSE: SNE) Playstation, Internet video set-tops such as Apple (Nasdaq: AAPL) TV or Roku, or through Blu-ray players or TVs that can be connected to the Internet themselves, up from 30 percent last year. But LRG found that 1.6 percent of the households it surveyed have stopped subscribing to a multichannel video service in the last year, and that just 0.1 percent of that sample do not plan to subscribe again to cable or satellite TV because of the content available on Netflix.
"Video is increasingly being watched on different platforms and in different places, yet these emerging video services still generally act as complements to traditional television viewing and services rather than as substitutes," LRG president and principal analyst Bruce Leichtman said in an announcement about the research report. Leicthman, a former Continental Cablevision executive, said the findings are based on a survey of 1,251 households.
LRG said that 7 percent of Netflix subscribers are likely to switch from their multichannel video provider in the next six months, compared to 12 percent of non-Netflix customers. The firm said that 79 percent of Netflix Watch Instantly customers use it to watch movies and TV shows on a TV, and that 59 percent of that group watch Netflix through a video game console.
- see the news release
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