Study: Netflix Driving New Video Services

Netflix driving use of emerging video services -- few are 'cutting the cord' to multi-channel video services

March 30, 2011

1 Min Read

DURHAM, N.H. -- New consumer research from Leichtman Research Group, Inc. (LRG) finds that 30% of all households have at least one television set connected to the Internet via a video game system, a Blu-ray player, and/or the TV set itself - up from 24% a year ago. Overall, 10% of all adults watch video from the Internet via one of these devices at least weekly, compared to 5% last year. This increased usage is heavily driven by Netflix subscribers, with 30% of Netflix subscribers watching video from the Internet via one of these connected devices weekly, compared to 3% weekly use among all non-Netflix subscribers.

These findings are based on a survey of 1,287 households nationwide and are part of a new LRG study, Emerging Video Services V.

"The use of emerging video services rapidly increased over the past year, with Netflix being the key driver of this growth," said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. "Even with this growth in emerging video services, this isn't creating a significant trend in consumers - cutting the cord to multi-channel video services - including cable, satellite, and Telco video services. Despite a highly saturated market, coupled with slow housing growth, the multi-channel video market in the US still grew by over 500,000 subscribers in 2010. This survey found few "cord cutters" over the past year, and little difference in the intent to switch or disconnect service from prior years."

Leichtman Research Group Inc. (LRG)

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