Pay-TV subscribers love Netflix too

DetailsMichelle Clancy | 03 January 2015

Time-shifting is everyday reality for about three-quarters of Americans. And increasingly, those plans include Netflix, with more than a third of pay-TV subscribers using the service.

Leichtman Research Group (LRG) has found that a full 76% of US households have a DVR, subscribe to Netflix, or use video on demand (VOD) from a cable or telco provider. That’s compared with 70% of households last year. And, 26% of households are using two of the services, and 11% are using all three.

"This is LRG's thirteenth annual study on on-demand TV. While VOD and DVRs were relatively nascent when this series of studies began, they are now core components of pay-TV packages," said Bruce Leichtman, president and principal analyst for LRG. "Along with Netflix and other over-the-top offerings, these on-demand TV services have permanently changed the options of how people may choose to watch TV."

The survey also found that pay-TV subscribers are less likely to have Netflix (36%) than their cord-cutting non-pay-TV brethren (48%). Of the Netflix subscribers, 36% of them stream video daily, and 72% weekly -- up from 10% daily, and 43% weekly in 2010.

In all, 32% of pay-TV subscribers with Netflix stream Netflix daily -- compared with 53% of non-subscribers with Netflix.

Meanwhile, 62% of US households that subscribe to a pay-TV service have a DVR (up from 41% five years ago), while 1% of pay-TV non-subscribers have a DVR. In addition, 55% of households with a DVR now have DVR service on more than one TV set, up from 28% five years ago.

Growth in VOD uptake has meanwhile slowed; 59% of all cable subscribers said that they have used VOD compared with 46% in 2009, and just 10% in 2004. In all, 63% of digital cable subscribers, and 58% of telco video subscribers, used on-demand in the past month.