Are Netflix and other streaming-video services contributing to the demise of cable and satellite TV? Some consumers may be deserting TV for streaming services, but for most pay-TV customers, Netflix and its ilk continue to be complementary to traditional television.
About 65% of pay-TV subscribers say they now have Netflix -- up from 41% in 2013, according to a new study by consulting firm PwC. The increases were most pronounced among older demos: Netflix subscribership among pay-TV customers 50-59 rose from 19% last year to 58% in 2014. That's compared with 37% to 66% among those 35-49; 51% to 71% among those 25-34; and 56% to 65% for 18-24.
Those rates of growth indicate a strong affinity for Netflix among pay-TV customers. Overall in the U.S., the net number of Netflix subscribers increased 19.7% over the last 12 months, from 31.1 million in the third quarter of 2013 to 37.2 million in Q3 2014.
In addition, the PwC survey found that overall, Amazon Prime subscriptions jumped from 18% of pay-TV households in 2013 to 32% this year, while Hulu Plus subscriptions rose from almost 8% to more than 11%.
But with more video options than ever, a growing number of consumers may be cutting -- or shaving -- the cord. Overall pay-TV subscriptions have declined among consumers under 35, the study found, while it was flat for those 35-49 and up slightly among the 50-59 cohort. Among those 18-24, cable and satellite subscriptions dropped from 77% in 2013 to 71% this year. Furthermore, only 42% of pay-TV subs answered yes when asked if they saw themselves subscribing to cable 10 years from now, vs. 91% in a year from now and 61% five years from now.
For consumers the consternation with subscription-TV service continues to center around paying for channels they don't watch -- with 41% of survey respondents saying they'd prefer a la carte pricing options, according to the PwC study. But TV remains popular, with 73% of viewers saying that watching TV increasingly is often as good as going to the movies.
The study also found binge-watching of TV series to be a major phenomenon, with about 50% of viewers saying they have watched an entire season of a show in one week.
The data is based on an online survey of 1,024 consumers conducted in September 2014. PwC said the survey sample is representative of the U.S. population across gender, age and income. The 2014 results were compared with a similar 1,008-person study conducted in the fall of 2013.
© 2014 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC
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