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TiVo: Netflix Not Cannibalizing Traditional TV Viewing

29 Jul, 2013 By: Erik Gruenwedel

Study would appear to rebuke claims that Netflix and SVOD spur cord-cutting of traditional TV access

Netflix does not appear to cannibalize traditional TV, according to new data from TiVo Research and Analytics Inc. In a survey of TiVo households that also subscribe to Netflix, TRA found no significant difference in the amount of traditional TV viewing between the self-reported Netflix and non-Netflix households, nor did either group differ from the overall TV viewing population.

Indeed, 57% of nearly 10,000 respondents in a May 2013 survey said they subscribe to Netflix and 18% had watched "House of Cards." Another 50% said they subscribe to Amazon Prime Instant Video and 18% to Hulu Plus. Finally, 8% said subscribe to all three SVOD services.

Households that reported viewing “House of Cards” watched 85% more HBO than non-Netflix households. “House of Cards” households watched Showtime's “Homeland” 125% more than those that don't use Netflix. Netflix households viewed Showtime's “Homeland” 26% more than those that don't use Netflix.

“Our data show that Netflix is not currently a substitute for traditional television, but offers a way for TV lovers to watch more of the kinds of programs they love,” Mark Lieberman, CEO of TRA, said in a statement. “The future of television may tell a different story, but as of today we've found that the Netflix subscribers in our study are not watching less traditional TV.”


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