Netflix users not abandoning traditional TV viewing

Joseph O'Halloran | 30-07-2013
Contrary to the received wisdom that over-the-top services would lead to wholesale cord-cutting, new research from TiVo Research and Analytics (TRA) has found that Netflix at least is not cannibalising traditional TV viewing.
The research body, said to be the largest provider of single-source TV viewing and purchase data for advertisers and TV networks, observed historical TV viewing data from those households from November 2012 through April 2013 across 28 of the most watched US TV networks and benchmarked them against the total universe of its 1.5 million intab TV households.
Fundamentally the research found that there was 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.
Nearly three-fifths (57%) of the sample subscribed to the leading OTT service and 18% had watched House of Cards, Netflix’s EMMY award-winning first-foray into original content. Half the sample also reported they subscribe to Amazon Prime and 18% to Hulu Plus; 8% subscribe to all three over-the-top services.
Yet even those most avid Netflix viewers did not stop watching other services including individual dramas. Indeed households who reported viewing House of Cards watched 85% more HBO than non-Netflix households and they watched Showtime's Homeland 125% more than those who don't use Netflix. All Netflix households viewed Showtime's Homeland 26% more than those who don't use Netflix.
Commenting on the research, Mark Lieberman, CEO of TRA said: "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 programmes they love. 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."