Netflix, Inc. (NASDAQ:NFLX) subscribers believe the popular streaming service can take down traditional television, says a new survey. According to the study, a majority of Netflix users think streaming content service is capable of replacing conventional, traditional broadcast TV. However, at this point, it still can’t replace two things: live sports and the theater experience.
Can Netflix, Inc. Replace Traditional TV?
Cord cutting has been the trend for the last few years. This is when consumers end their cable subscription and then turn to online streaming to get their entertainment fix. With rising cable costs, a competitive marketplace and consumers doing everything online, cable companies and broadcasters are trying to adapt with their own streaming services. But is it enough?
Apparently not, at least according to a new survey of Netflix subscribers.
Seventy-five percent of Netflix subscribers say Netflix is already able to replace traditional TV. The survey respondents did say that Netflix is still unable to replace live sports coverage or the incredible experience of the movie theater. Fewer than one-quarter (24 percent) said Netflix could replace movie theaters, while two-thirds don’t think it will happen anytime soon.
The survey was conducted by AllFlicks, a Netflix website that questioned 3,000 users.
When it comes to live sports, reports suggest that Netflix has been open to the idea of streaming live sports. Netflix is nearing a deal with professional wrestling promotion Lucha Underground, but that’s the closest it has come to any sort of sports agreement.
Netflix may need to act fast. The website could be losing out on an important market as some of its rivals have struck deals. Hulu, for instance, is looking at incorporating live sports into its business model. If the company can’t do it then it’s only a matter of time before other competitors do.
Netflix, Inc.’s Contribution to Cord Cutting
In recent years, cable and satellite customers have opted out of their TV service. Instead of paying $100 per month for mostly commercials and just a couple of channels, they’re willing to spend a fraction of that on streaming websites.
Americans have been cutting the cord at a very fast pace. An eMarketer report released in December found that nearly five million U.S. households no longer pay for TV services, which is an increase of 10.9 percent year-over-year. It’s projected that the growth will continue to go up.
By the end of 2017, the number of U.S. households with cable or satellite subscriptions will dip below 100 million. Once 2018 rolls around, one-in-five U.S. households will not have cable TV in 2018.
To no one’s surprise, U.S. millennials are leading the charge. A 2014 study reported that one-quarter of millennials have either cut the cord or have never had a cable subscription. Last year, it was noted that millennials have more streaming services than pay-TV, says ClearLeap.
The same study found that millennials don’t need a television to access content and are adopting the new technology before anyone else. It also discovered that millennials prefer movies to any other form of content, which is something Netflix excels at.
This suggests, says David Mowrey, vice president of product management at Clearleap, that content creators need to go directly to the consumer to stay relevant and successful.
“A number of services have spun up in the last 12 months, and it’s really taken off,” he said. “It’s not an option for content companies anymore. They must go direct to consumers to stay relevant.”
Will you cut the cord this year or will you stay put with your cable service?