Is Netflix Killing Cable TV?
September 18, 2010 Leave a comment
I am usually good at predicting the potential for most technologies in the market, but I just didn’t see this one coming so early. An alarming survey by Credit Suisse on 250 Netflix subscribers shows about 37% of Netflix subscribers aged 25 to 34 have canceled their pay-TV services in favor of Netflix’s streaming service.
Nearly 30% of 18-24 year-olds said they are opting for Netflix over cable. The company recently debuted applications that allow the video streaming service to also be accessed on the iPhone and iPad.
Credit Suisse also maintained that the content and cable kings are not necessarily overthrown yet. Their survey found that just 17 percent of Netflix subscribers of all ages and incomes are substituting that service for cable.
This should serve as a wake up call to the broadcast networks and cable companies that they need to take control of their revenue destiny right now, while they still have some negotiating power.