Written by: Roshan Dwivedi
Netflix may have very little effect on traditional pay TV business — at least according to a new study. In contrast to many industry estimates, The Diffusion Group found that cable, satellite and IPTV platform use among Netflix homes declined only marginally to 2015 from 2012.
Surveying 3,428 consumers this year, the research firm found that 84% of the subscription video on demand service‘s customers also subscribing to a traditional pay TV service.This is down — but only three percentage points from 2012. Surveying 2,001 U.S. consumers three years before, TDG found that 87% of Netflix users also subscribed to a pay-TV service.
“So much for the hypothesis that Netflix use leads to the cancellation of legacy pay-TV services,” says Nick Beyer, analyst and author for TDG. That said, there is a greater difference when looking at pay TV users who use Netflix: The percentage of pay-TV homes using Netflix has substantially increased to 49% from 36%. Netflix ended 2014 at around 40 million users up from 27.1 million in 2012.
While the TDG study focused on the cord-cutting effect that some pay TV providers has been enduring, other studies/research has focused on actual viewing declines Netflix seems to have cause for some TV networks.
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