Monday, July 29, 2013

Reports Say Netflix Doesn't Hurt Cable

In a surprising research study done by TiVo, it shows that Netflix does not hurt TV viewing.  In other words, Netflix is seen more as another "channel" choice and not as a replacement to cable networks.  According to TiVo Research and Analyst chief Mark Lieberman, “'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.'”In fact Netflix users watch more premium shows on HBO and Showtime than non-Netflix users.  In other words, Netflix appeals to the heavy TV usage who wants more choice and sees Netflix as a complement to cable TV and not a replacement.

This research study just might let cable operators breathe a little easier knowing that Netflix isn't a cause for cord cutting.  At the same time, consumers are cutting the cord to cable in an ever increasing stream.  If Netflix isn't replacing cable subscriptions then what is?  Perhaps this younger demo is bypassing TV altogether for gaming on their Xbox and tablets. 

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