Netflix, Inc. (NASDAQ:NFLX) had a low subscriber growth in the US last quarter, but it still has more consumers than top US cable companies. AllFlicks – a data site that tracks the streaming industry – had put together a snapshot showing how the streaming giant compares to its pay TV rivals. The list by AllFlicks includes cable firms, as well as, fiber and satellite firms, but the streaming giant dominates all of them.
More subscribers than top 3 cable firms
The data site found that Netflix (OTT) has 47,130,000 subscribers while Verizon FiOS (fiber) and Comcast (cable) have just 4,700,000 and 22,400,000 subscribers respectively. In addition, AT&T U-Verse and DirecTV (IPTV/satellite) has 26,000,000, Charter Communications (cable) has 18,421,145 and Dish Network (satellite) has 13,909,000 subscribers. All these major Pay-TV rivals have fewer subscribers than the streaming giant.
Cox, which is the third-highest cable firm, did not make the list as it has around 4.5 million subscribers. This also means that Netflix, Inc. (NASDAQ:NFLX) has more subscribers than the top three cable giants (Comcast, Charter, and Cox) combined, despite the fact that the cable firms enjoy monopolies that probably assists in increasing their numbers. The three top cable firm together cover almost all the US.
In Q1 2016, the top nine US cable firms added just over 50,000 subscribers, with total subscribers at 49.1 million, as per Business Insider Intelligence. Some of those firms have not reported their Q2 earnings yet. Meanwhile, the streaming firm is just below that level, at 47.1 million for Q2. In the last quarter, the firms added just 160,000 new subscribers in the US
Should investors be worried?
The cable, satellite and fiber pay TV providers have a large subscriber base, but it is surprising to see that the streaming service has more subscribers than Comcast and other Pay TV companies. What is more surprising is that the comparison was done without including overseas markets, where the Netflix has another 36m customers, whereas the US-based cable firms have no additional subscribers to speak of.
For Netflix, Inc. (NASDAQ:NFLX), this news may sound like a good thing, but it could actually increase the fear of investors who are concerned about Netflix’s slowing subscriber growth. The streaming giant has attributed the slow growth on accidental cancellations from the new chip-enabled credit cards. However, the main worry among investors is that the slowdown is actually because the streaming giant has saturated the market, says a report from Business Insider.
Now, the main question is whether Netflix’s appeal can go beyond that of cable in the future, or will it stay in the same place.
In pre-market trading today, Netflix shares were down over 1%. Year to date, the stock is down almost 20% while in the last one-year, it is down over 18%.