Will Netflix Subscribers Keep Their Pay TV Services? - eMarketer

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Will Netflix Subscribers Keep Their Pay TV Services?

One in five Netflix subscribers has canceled pay TV

July 18, 2013

Nearly three-quarters of Netflix subscribers in the US still kept their cable, satellite or telecom pay TV subscriptions, according to a June 2013 study from Cowen and Company. But another 20% reported having gotten rid of their pay TV subscription, raising questions about whether more Netflix subscribers could soon become cord-cutters.

Cord-cutting is typically associated with those in the youngest age bracket, and the survey found this to hold somewhat true. However, there was also a notable propensity to cut the cord among Netflix subscribers between 30 to 44 years old, with 41% having cut pay TV. Overall, this age group was more likely to subscribe to Netflix than 18- to 29-year-old respondents.

US Cord-Cutters* vs. Total Netflix Streaming Subscribers, by Age, June 2013 (% of respondents)

Those between 45 and 60 years old actually were the most likely to be Netflix streaming customers, at 33%. But only 17% of this group had cut the cord.

The majority of Netflix streamers reported watching the service on their PC, followed by streaming via a video game console connected to the TV, at 38%. Tablets, used by 37% of respondents, were actually almost as popular a method, and indicative of tablets’ growing role in digital video viewing.

Devices that US Netflix Streaming Subscribers Use to Access Netflix Streaming Services, June 2013 (% of respondents)

In total, the study found that more than four in 10 US consumers subscribed to Netflix or used a Netflix account. Cord-cutters reported watching an average 8.1 hours of Netflix content per week, while total Netflix subscribers watched 6.7 hours on average. Harris Interactive reported somewhat lower figures for total Netflix subscribers, estimated to reach 28% of US web users in April 2013.

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