In a new study, it was found that Canadian Netflix, Inc. (NASDAQ:NFLX) users continue with their premium TV packages, while adding on additional daily TV through other sources.
According to a report by Media Technology Monitor, complied from surveys from thousands of Canadians, most Netflix customers are not “cord cutters;” this refers to consumers who have either cancelled their cable or satellite plans for different content options. These users are also more likely, as compared to other consumers, to pay for a premium TV package as they dish out $8 per month for the company’s streaming service.
Tony Ward President, Americas, at Xero On Small Business And The Effects Of Covid-19
ValueWalk's Raul Panganiban interviews Tony Ward, President, Americas, at Xero, discussing the effects Covid had on small businesses. Q3 2020 hedge fund letters, conferences and more Interview with Tony Ward ValueWalk's ValueTalks ·
Canadian Netflix users have been profiled as streaming an average of 60 minutes per day, watching an additional 30 minutes of online content, followed by 90 more minutes of broadcast TV.
Netflix, Inc. (NASDAQ:NFLX) subscribers viewing TV are enjoying less cable and satellite, spending about 11.3 hours each week as compared to non-users at 14.9 hours. Factor in Netflix streams and additional online TV content, this came to an average of 22-plus hours per week of watching as compared to 16 hours for non-Netflix customers.
In other Netflix news, CEO Reed Hastings said with the growth of Amazon.com, Inc. (NASDAQ:AMZN)’s Prime Instant Video and Hulu Plus rivals, it has improved video streaming service relationships with studios. This comes as bidding has risen for programming, diminishing studios’ concerns for a Netflix dominance within video streaming.
Speaking at Morgan Stanley (NYSE:MS)’s Technology, Media & Telecom Conference on Monday, HastingsR said via CNET, “One fear they had is that we would run away with the prize…. They don’t feel as strategically vulnerable. It’s an overall healthier situation than it was two years ago.”
Netflix is off to a good start this year with its original content. It introduced the political thriller series, “House of Cards.” It has David Fincher as the director and it stars Kevin Spacey. According to the company, in the United States it is the most-widely streamed content.
The company plans to introduce additional series and has one already in the queue, a horror show called “Hemlock Grove.” Hastings noted that success from this area won’t greatly change Netflix’s business model, but to the group of analysts and investors, he added, “I don’t want you guys to think of us as the ‘original content company.'”
On a final comment by Hastings, he repeatedly compared Netflix, Inc. (NASDAQ:NFLX) to HBO many times and said he has hopes his company would grow into a business like the big cable channel as it offers both programs from external sources as well as their well-received original content. He went so far as to state this lofty goal: Netflix will be its market’s leader, similar to HBO and its cable market.
Hastings won’t count out Amazon Prime and Hulu who could find their place as smaller competitors to HBO. He said, “We want to be the HBO of that space and we want them to be smaller.”