Monday, September 10, 2012

Report: Netflix Usage Holding Steady At Around 2,000 Minutes Per Subscriber Per Month

Relatively steady usage isn't exactly the basis for bragging rights, but given all the headwinds Netflix is facing, it isn't shabby either. In particular, Netflix has faced increasing content parity from Amazon Prime Instant Videos, which at some level, has to impact viewership for users with subscriptions to both (e.g. "Honey, we can watch 'Parks and Recreation' on either Netflix or Amazon, what do you prefer?") if not driving outright Netflix churn at some point. While Amazon may be competing to offer the same content, there are of course other providers with content different from Netflix (e.g. network TV, cable TV, Hulu, YouTube, Vudu, HBO GO, etc.). Everyone is jockeying for audience attention.

Netflix's CEO Reed Hastings has said repeatedly that he views these pay-TV providers' TV Everywhere services as the biggest long-term threat to the company. On this front though, the good news for Netflix is that TV Everywhere has barely broken through to the public; GfK found that just 17% of survey respondents were even aware their pay-TV provider offers TV Everywhere (in line with recent Parks Associates' research), and of this, just a fifth of these people have actually used it. Troubling for pay-TV operators is that these are essentially the same awareness and use levels GfK found 7 months ago in a survey fielded in Nov. '11.

From the article, "Report: Netflix Usage Holding Steady At Around 2,000 Minutes Per Subscriber Per Month" by Will Richmond. 

Next: Survey: 1/3 Or More of Early Chromecast Owners Using Device Daily/Almost Daily


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