Netflix usage on the rise, but TV Everywhere threatens subscriber loyalty

Michelle Clancy | 11-09-2012

Netflix usage is on the rise, both in time spent and number of monthly users. However, TV Everywhere gambits from pay-TV operators are encroaching on subscriber loyalty.

A new report from GfK Media shows that the average Netflix user (ages 13 to 54) watches 5.1 TV shows and 3.4 movies per week via the service.
Using conservative length estimates for TV shows and movies, (30 minutes and 1.5 hours, respectively), this means that an average Netflix subscriber spends about 8 hours a week watching the service. To put that in perspective, that's double the time that an average person in the same age group spends playing video games. That figure comes in at about 3.5 hours per week, according to MultiMedia Mentor.
Overall, the study found that 47% of 13- to 54-year-olds have used Netflix, and a full 39% are monthly users up from 35% in 2011.
That's not to say that Netflix doesn't face problems, however. Almost four in 10 (37%) Netflix subscribers said that they still have a negative view of the brand in the aftermath of 2011's pricing missteps; and 51% would be willing to switch to a similar service if it was offered by their pay TV service (worryingly for over-the-top (OTT) streaming, that's actually up from 45% in 2011).
"In a short time, Netflix has carved out a powerful role in U.S. media, providing the kind of content control and user-friendly interfaces that consumers demand now," said David Tice, senior vice president of GfK Media and director of the Home Technology Monitor. "Netflix clearly has built a model worth emulating but it will have to fight harder to sustain brand loyalty and its position as market leader."