Netflix Popular Even In Traditional Television Households

Netflix Popular Even In Traditional Television Households

Netflix, Amazon and Hulu Plus have been subscribed to by four in ten American households who also have traditional television. However, among the majority of the families subscribe to just one of the services, it’s usually Netflix.

Netflix preferred most by households

A study conducted in the fourth-quarter of 2014 and released on Wednesday by Nielsen, shows that how a streaming video not only supplements, but also challenges the existing cable/satellite packages. Netflix has been growing in terms of popularity, and this according to few of the experts is a reason for the drop in cable TV ratings, according to a report from CNN. Traditional live viewership of TV channels is still high, but it is not as high as it used to be.

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Netflix is the most popular online video-streaming service in the U.S. with as many as 36% households subscribing to it, followed by Amazon and Hulu Plus with 13% and 6.5% respectively.

The study also detailed data on the basis of demographics. As per the study, 49% of the streaming households were below the age of 44 and 45% of the viewers have children. The demographic findings of the study certainly do highlight why Netflix and other similar services are focusing on offering content for viewers of all ages.

Massive market, still untapped

The Nielsen study also found an untapped market for Netflix-like services. The study revealed that there are 35% of American TV households that have broadband access, but no subscription to any of the video streaming services. Also, there was no broadband connection with 24.5% households.

Daily Live TV viewing by an average American adult was found to be 4 hours and 51 minutes during the fourth-quarter. There has been a decline of 13 minutes a day from last year. The usage of internet on a smartphone is up 17 minutes a day, and on PCs it is up by 5 minutes a day. The number of minutes spent watching videos through streaming services by a household in a day is not covered in the Nielsen study.

At around 10 am EDT Thursday, Netflix shares were up 2.23% to $450, while year to date the stock is up 31%.

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