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According to research from TDG, the use of legacy pay-TV services among Netflix Streamers has declined only three points in the last three years, from 87 per cent to 84 per cent, within the margin of error. At the same time, the use of Netflix streaming among pay-TV users has increased 33 per cent, up from 36 per cent in 2012 to 49 per cent in 2015.
“So much for the hypothesis that Netflix use leads to the cancellation of legacy pay-TV services,” notes Nick Beyer, TDG analyst and author of the new study, Netflix Streamers – A Consumer Snapshot. Beyer is quick to point out, however, that simply because Netflix use is not correlated with significant service cancellations does not mean it is innocuous with respect to traditional TV services.
“Though Netflix isn’t driving cord cutting, it is nonetheless an incremental threat to premium TV services, in particular,” says Beyer. “Today’s Netflix Streamer is significantly less likely to use value-added pay-TV services such PVR, premium sports, and pay-per-view than they were in 2012.”