Ratings for Cartoon Network plummeted 10 percent in the Netflix, Inc. (NASDAQ:NFLX) households after the Turner licensing deal, according to analyst Todd Juenger from Sanford Bernstein. The system also accepted the decline in ratings, but said that it was not as bad as could have been, says a report from Variety.
Ratings down 10 percent since the deal with Netflix
Earlier this year, Turner entered into a deal with Netflix for shows on Cartoon Network and Adult Swim, owing to which almost half of programs available on cartoon network can also be accessed on Netflix, like Adventure Time, Dexter Laboratory, Powerpuff Girls and Cow&Chicken.
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Cartoon Network content was available on Netflix from March 30, and since then ratings in Netflix households have been down by 10 percent compared to viewership in non-Netflix households.
Juenger used data gathered from TiVo’s StopWatch measurement service to compare TV viewing in households that subscribe to Netflix, Inc. (NASDAQ:NFLX) and those that don’t.
“If there was anybody out there who still didn’t believe that SVOD hurt kid’s ratings, this should put a final end to that debate,” Juenger wrote.
Cartoon Network expected 3-5 percent decline
Juenger noted that overall ratings for Cartoon Network came down 23 percent from April to July on a year-to-year basis. The situation is getting worse as for July ratings were down 40 percent from the previous year.
Cartoon Network previously said that it had an idea that TV ratings will decline 3 percent to 5 percent once kid’s content is given to Netflix. According to Juenger, overall ratings of Cartoon Network declined 3 percent because of Netflix, Inc. (NASDAQ:NFLX). This number is based on an assumption that 30 percent of cartoon viewers subscribe to the service.
“Our own more recent analyses and the most recent Bernstein analysis confirm a national impact of about 3%” because of Cartoon shows becoming available on Netflix, Inc. (NASDAQ:NFLX), the network said.
Cartoon Network also stated that declines in any other ratings are not the because of Netflix, for instance shows like Ninjago, which could not return with another season in the first half of 2013, has also affected ratings. The latest series of Cartoon Network will be aired towards the fourth quarter.