Nielsen Hldg NV (NYSE:NLSN), the television ratings and research firm, reported news that will have executives at both Netflix, Inc. (NASDAQ:NFLX) and Hulu (Plus) smiling from ear to ear in their offices this afternoon.
If you, like others, sat down and devoured the Netflix, Inc. (NASDAQ:NFLX) original series like “Orange Is The New Black” or “House of Cards,” you are by no means alone in this viewing habit known as “binge watching.”
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Neilsen analysis of over-the-top video
According to an analysis of over-the-top video by the ratings and research company, 88 percent of Netflix users and 70 percent of Hulu Plus users report streaming three or more episodes of the same TV show in one day. Not only are you one of millions who watch like this, you are a part of a growing majority.
Even better yet for Netflix, is that of the viewers polled, 45 percent mentioned Netflix, Inc. (NASDAQ:NFLX) original content as their first example of the type of show that they binge watch. Netflix is building on the HBO model as it looks to bring in and retain more and more subscribers each month. The research released today also shows that Netflix was wise to release the aforementioned series in their entirety on the same day that they release the first episode. That model was pioneered by Netflix, but don’t expect other companies not to jump on the band wagon given Nielsen Hldg NV (NYSE:NLSN)’s research.
Netflix subscribers comparison
Further proof that Netflix, Inc. (NASDAQ:NFLX), who dwarfs Amazon Prime and Hulu Plus in subscribers, is following HBO’s model is the fact that the company has begun referring to itself as the “world’s leading Internet television network” rather than the leading Internet video subscription.
While Netflix is not keen to explain to shareholders or the media just how much its original programming is doing to pull in subscribers, the research that Nielsen Hldg NV (NYSE:NLSN) released today suggests that its programming is a big draw to people looking to subscribe to a streaming video service.
The pool of Americans who don’t subscribe to Netflix, Inc. (NASDAQ:NFLX) is clearly shrinking, but their programming should help them pull from its primary competitors as well as sign-up first-time streaming customers. Netflix currently has 30 million streaming households on its service.
It also bodes well for the Amazon and Hulu, which are working to catch up with Netflix, Inc. (NASDAQ:NFLX) by focusing quickly on originals of their own.