Thursday, September 19, 2013

Thirty eight percent in the US watch Netflix online -- each one knows how to "cut the cord"

Yesterday I posted a note on Netflix' vision for their company and the TV industry in general. They now see themselves as a "movie and TV series network" and predict rapid growth for Internet TV. Today, I came across a Nielsen survey that supports both of those contentions.

The survey showed that 38% of the people in the U. S. subscribe to or watch Netflix streaming video service. That is up from 31% last year.

I don't know about you, but that is a lot more than I would have guessed. It is about 119 million people if they consider the entire population -- babies and all. Note also that Hulu and Amazon also have significant, growing numbers of subscribers.

Netflix' view of themselves as a series network is also confirmed by the study. Forty five percent of Netflix streaming subscribers say the types of shows they watch when they stream are original programming -- series like "House of Cards."

And, when they watch those series, they tend to “binge.” Eighty eight percent of Netflix users and 70 percent of Hulu Plus users report streaming three or more episodes of the same TV show in one day. As we pointed out in our previous post, both consumers and creators like the full-season format of Netflix productions.

The survey also showed, that Netflix and Hulu are watched on a variety of devices:

The above figure also suggests a trend away from computers and game machines toward phones and tablets. People want to watch TV on any device at any time and at any place.

"Over the top" Internet television is not just for geeks any more -- 38 million people understand how easy it is to defect from cable and satellite TV, to "cut the cord." As the quality and variety of Internet TV material improves, it will be easy for them to drop their cable and satellite subscriptions. When we reach the tipping point, the transition will be rapid.

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