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More Netflix Subs Cutting Their Pay-TV Service

2 Jul, 2015 By: Erik Gruenwedel

Ever since Netflix began focusing on subscription streaming (2008), CEO Reed Hastings has assured analysts and media companies the erstwhile by-mail disc rental pioneer was complementary to the pay-TV ecosystem.

As cable giants Comcast, Time Warner Cable and others continue to hemorrhage video subscribers, Netflix now admits to becoming a “TV disruptor” of sorts. A new of Netflix subs apparently seems to confirm that.

The survey found that 67% of Netflix subs still have pay-TV service (cable or satellite), and of those, 9% plan to cancel their pay-TV service and another 16% are unsure if they will still have their pay-TV by next year. The survey of 829 Netflix subs was conducted June 1-14 by a multichannel video program distribution industry critic who calls himself “Mr. Cable Cutter,” operating website www.cutcabletoday.com.

About 77% of survey respondents said they have their high-speed Internet service bundled with pay-TV and telephone — subscription plans they claim are difficult to break.

“A lot of people only retain cable or satellite because of the internet bundle,” one middle-age male respondent wrote.

Meanwhile, 92% of respondents claimed satisfaction with Netflix, with 93% indicating a willingness to continue the service over the next 12 months.

“Over the past few months, we watch less ‘television’ and more Netflix,” wrote a female respondent under the age of 35.

OTT Video Services Seen as Complementary

As Netflix users cut the cord, they are using other streaming services to complement their Netflix subscription. Streaming video apps like Amazon Prime Instant Video, HBO Now, and Hulu Plus are giving subscribers access to alternative TV shows and movies.

Almost 50% of Netflix subs also subscribe to Amazon Prime Instant Video, while 30% subscribe to HBO Now, 27% to Hulu Plus and 5% to Sling TV.

“We pay for Netflix, Hulu Plus, Amazon Prime and pay for Comcast Internet. Our bill went from $220 per month to $60 per month,” wrote one middle-age male.



About the Author: Erik Gruenwedel

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