Advanced Television

Netflix has changed viewing habits

September 30, 2011

Netflix has transformed the viewing habits of millions of U.S. consumers — but it may need to do more to win their hearts. Those are among the findings of a new study of “over-the-top” video viewing from Knowledge Networks.


The research — conducted not long before Netflix’s much-discussed changes in its pricing policies — shows that


— 35% of all U.S. consumers (ages 13 to 54) say they use Netflix — for streaming and/or DVD or Blu-ray rentals — at least once a month;


— regular Netflix subscribers, on average, watch 5 TV shows and 4 movies per week via the streaming or DVD-rental aspects of the service;


— 20% of Netflix users with VOD are watching VOD less because of their Netflix viewing; but


— 10% of Netflix subscribers said they were “very likely” to cancel the service if their cable or satellite provider began to offer a similar service at a similar price.


Knowledge Networks also found that videogame systems (62%) are by far the most popular gateway for viewing Netflix “Watch Instantly” content on a TV set; other options — like Internet-connected Blu-ray players and Roku boxes — are used by 15% or fewer of these viewers.


Note: Netflix was not involved in and does not endorse this report.


“Netflix has made remarkable in-roads, bringing streaming video and other alternative viewing options to a mass audience,” said David Tice, VP and Group Account Director (Media) at Knowledge Networks. “At present, Netflix has a dominant market position in this space — but cable video on demand (VOD) and other video services are widely available and poised to act as alternatives. Netflix needs to use its remarkable platform to build deeper customer relationships, differentiating itself by offering benefits that speak to subscribers’ desire for control, comfort, and convenience.”


The online study — How People Use(R) Over-the-Top TV — was conducted in June 2011 among 1,013 members of KnowledgePanel(R). Using “address-based sampling,” KnowledgePanel provides statistically valid representation of the U.S. population as well as many difficult-to-survey populations.



Categories: Articles, Connected TV, OTT, Research