For all the hype regarding Netflix, Inc. (NASDAQ:NFLX)’s success with both its stock and its original programming, cable remains king. All the talk of cord cutting is just that—talk. Short of a doctor cutting the umbilical cord, this “cord cutting,” or leaving cable, is just not happening according to a June 2013 survey conducted by PricewaterhouseCoopers. Some younger viewers who have never had cable in the first place and are accustomed to streaming video or pirating television with torrents don’t count as there is no cord to cut.
After cable, however, Netflix, Inc. (NASDAQ:NFLX) comes in next among all pay TV services with 41 percent of those surveyed in a report released by eMarketer today paying for a monthly Netflix subscription.
Satellite TV came in third at 26 percent, followed by Amazon Prime at 18 percent, iTunes at 16 percent, and Hulu at 8 percent.
Cable, though, is still crushing it with 70 percent of those surveyed paying for often expensive premium packages. From the data, its quite clear that Netflix, Inc. (NASDAQ:NFLX), Amazon Prime, and others are not taking too much away from cable but are simply supplementing it. The data also argues that people ages 18 to 24 are still watching cable, they just might not be paying the bill, according to eMarketer.
Original programing driving sales
It’s clear that original programming is driving cable sales, with 63 percent of Internet users in the United States saying that it is at least somewhat important in their decision to continue to pay for a cable subscription. Live sports is a large drawing point for many as well.
While Netflix, Inc. (NASDAQ:NFLX) is making a strong play of its own in original programming, it’s not presently sufficient to supplant cable. While “House of Cards” became the first online-only service to win an Emmy award, it won’t be the last. Netflix has, however, signed up a number of people with additional shows like “Arrested Development” and “Orange is the New Black.”
Each of these shows will ultimately end up on cable once Netflix, Inc. (NASDAQ:NFLX) sells the licensing rights.
For those using online TV hosting sites, over 60 percent polled by PricewaterhouseCoopers use Netflix, Inc. (NASDAQ:NFLX). 50 percent have checked out the online sites of TV networks, over 33 percent use Hulu, and a touch less than a third subscribe to Amazon Prime.