Survey Shows Netflix Poses Threat To Paid TV

A recent survey may serve as a wakeup call to broadcast networks and cable companies that their subscriber base may soon be slipping away. According to a Credit Suisse survey, approximately 30 percent of Netflix users between the ages of 18 and 24 are using Netflix's Watch Instantly service to watch TV and movies instead of paying for cable or satellite TV service. The survey also revealed that 37 percent of Netflix subscribers between the ages of 25 and 34 are doing the same.

“Netflix’s low cost, subscription streaming service (with improving content) is our biggest worry and could become ‘good enough’ for consumers with moderate income and TV usage to use as a substitute for pay TV,” said Credit Suisse’s Spencer Wang and a team of analysts.

As the cord-cutting trend has the potential to eat into the big cable and satellite companies' profits, companies such as Verizon, Dish Network, Time Warner Cable, and Comcast are looking into various options to lure would-be cord cutters with services such as TV on tablet computers.

Of course, Netflix isn't the only streaming option available today. Other services such as Xbox Live, the PlayStation Network, and Hulu Plus have potential to cut into cable and satellite companies' subscriber base as well. Have you cut the cord yet?

Via:  CNBC
lifeasjosh 4 years ago

Yep. Got rid of internet and TV from Cox. Cost over $50 a month. Switched to a sprint aircard for both services. I use the aircard for reading reviews online and paying bills. My wife uses it to watch hulu and keep track of her favorite shows. Since I work for sprint, it only costs us $15 a month for internet and TV. Plus, its all mobile. We can take it with us on road trips and vacations. Also, since we use a apple mac book, we can use it as a router and send the usage to however many devices. Works out pretty well.

AlanH 4 years ago

Personally, I don't even have a TV but I use my phone to tether to my computer and I use the internet to watch whatever I may like

animatortom 4 years ago

Now that more people are used to watching things recorded on DVR's, it makes sense that a system like this would be more desirable instead of having to plan your day around the schedule of the show and possibly having to sit through commercials:P

I do kinda see Netflix as the starter drug, there will be something more streamlined in a few years that will be all inclusive for any of your entertainment needs. I think of it kinda like Netscape...Yes it works and is pretty coool.....but soon it will be out of date after having paved the way for the infastructure.

lifeskills 4 years ago

I can't cut the cord. I don't trust wireless service yet with my precious gaming. I have basic cable, but only because I got some promotion with comcast that makes it cheaper than just having internet. So I will continue to enjoy my 20 channels...

realneil 4 years ago

I use NetFlix and since I hooked up my new ROKU box, I've discontinued my Dish Network service. No good reason to keep paying them so much money every month.

NetFlix is a really good solution for me and my needs and Tom, at this point you'd have to pry me away from this service with a crowbar.

They keep adding services to the line up too, so I see them as leading the way and "paving" as they go.

dizowned 4 years ago

The only thing stopping netflix from taking over almost completely is content and availability. While the list they have is decent for most people ... I myself am a power TV viewer. I've gotta have all my channels, I've gotta be able to channel surf just when I feel like watching TV, but don't really care what I watch. The only niche that Netflix fills is ondemand and if there ondemand content and availability can surpass big daddy cable, then Ill kill my movie channel subscriptions and just have Netflix streaming.

IMHO, netflix needs to concentrate on the streaming and dump the mail service thing. Get some exclusive deals, and better yet, pre release date contracts with the studios and they'd corner the market. Imagine you being able to watch a new movie only 2 weeks after it hits theatre's, or even better yet do away with movie theatres and just stream it...

mrthreeplates 4 years ago

You bet I cut the cord. I got sick of $165 for my "triple pay" pricing and cut it down to $42 for just internet. IMO, just relying on over the top video isn't enough. What many people don't realize is that OTA (digital broadcast TV) is a great compliment to online video. Just put up an antenna and enjoy the free, digital, superb quality TV. I get 67 channels with a pretty basic antenna.

You combined OTA and OTT and you got a solution that makes you wonder why you ever paid for Cable at all. I even enjoy full DVR capability with a Media PC that is easy to use and (wait for it...) there is no monthly fee...

Sure there are some shows that I miss. Cutting the cord is about being patient. The good stuff will also be on DVD sooner or later. It is not like I'm missing out. I have sports (plenty of Football, Soccer, Olympic events), Kids programming, Network TV, Netflix, Hulu, Amazon VOD, etc... No shortage whatsoever. And I'm enjoying those $100 savings every month.

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