Nearly Half of US Households Not Buying Linear Video Buy Netflix

June 09, 2014
By: Gary Kim

Some 48 percent of U.S. consumers who do not buy a linear video subscription service buy Netflix, up from 29 percent in 2012 and 16 percent in 2010, according to Leichtman Research Group.

One might argue that shows a growing consumer willingness to forego a linear video subscription in favor of an “online-only” approach.

At the same time, the number of Netflix customers who also subscribe to linear video subscription services dropped to 80 percent in 2013, down from 85 percent in 2012 and 88 percent in 2010.

That might well also suggest that a growing percentage of Netflix and streaming video consumers are abandoning their linear video subscriptions.

Neither of those findings is surprising. On the other hand, some might argue, among all U.S. households, perhaps 85 percent or more continue to buy linear video, whether augment those services with an online service or not.

At the same time, 49 percent of all U.S. households have at least one television set connected to the Internet using a video game system, Blu-ray player, smart TV set or stand-alone device such as a Roku, Apple (News - Alert) TV, or Google Chromecast device. up from 38 percent in 2012, and 24 percent in 2010.

That means more households are familiar with how to use consumer Internet-delivered video on their primary TV screens. That opens the way for further streaming adoption.

Overall, 24 percent of U.S. adults watch video sourced from the Internet using a connected TV at least weekly, compared to 13 percent two years ago, and five percent four years ago, according to Leichtman Research Group

As you might expect, Netflix customers are more likely to watch using a connected device. Some 49 percent of Netflix subscribers watching video from the Internet using a connected device do so weekly, compared to eight percent weekly use among all non-Netflix subscribers.

Most Netflix streaming video users—78 percent—say that they watch Netflix on a TV set.

So far, though, a massive level of defection from linear video subscriptions has not occurred. 




Edited by Maurice Nagle