Netflix users remain faithful to pay-TV

DetailsJoseph O'Halloran | 09 July 2015

Even though the leading subscription video-on-demand (SVOD) service has been traditionally regarded as the prime agent for cord-cutting, research from TDG has revealed that Netflix users are not deserting pay-TV in droves.

Indeed data from the study Netflix Streamers - A Consumer Snapshot shows that actually the use of legacy pay-TV services among Netflix users declined by a mere three percentage points in the last three years, from 87% to 84%. At the same time, the use of Netflix streaming among pay-TV users has increased 33%, up from 36% in 2012 to 49% in 2015.

Yet TDG analyst and report author Nick Beyer noted that simply because Netflix use is not correlated with significant service cancellations does not mean it is innocuous with respect to traditional TV services. "So much for the hypothesis that Netflix use leads to the cancellation of legacy pay-TV services...Though Netflix isn't driving cord-cutting it is nonetheless an incremental threat to premium TV services, in particular," says Beyer. "Today's Netflix Streamer is significantly less likely to use value-added pay-TV services such PVR, premium sports and pay-per-view than they were in 2012."