Netflix, Inc. (NASDAQ:NFLX) has supposedly led the cord-cutting movement in recent years. But are Netflix users really cutting the cord? No. A new survey has found that most Netflix users still have their cable or satellite packages. This means that Netflix is acting as a complement to conventional cable and satellite services.
Netflix, Inc. Users Keeping Cable or Satellite Services
Netflix users seem to love both the online streaming service and their pay TV packages.
According to a new study from CutCableToday.com, 67 percent of Netflix users still have pay TV services. This is down from 80 percent in 2014, which suggests that cord cutting has actually slowed down among Netflix subscribers.
Overall, 83 percent of U.S. households still have cable or satellite television.
The survey further found that 11 percent of Netflix users with pay TV services say they are “not likely” to have their cable or satellite services next year. Fifteen percent noted that they remain undecided about ditching their pay TV. It could be because the lack of sports, says one survey participant.
“I was thinking of cutting the cord in January, however the options did not include enough sports for me,” a respondent stated.
Live sports has become a contentious issue for Netflix. It remains unclear if the website will ever offer live sports for its users.
Perhaps Netflix users are not cutting the cord because their cable is packaged with their Internet and/or phone services. The survey, which was conducted with 582 randomly selected U.S. Netflix subscribers, noted that 80 percent of users have bundled packages.
The website reported that 94.5 percent of Netflix users are happy with the service and do plan to keep it for the foreseeable future.
Moreover, the study discovered that 94.5 percent of Netflix users are happy with the service and do plan to keep it for the foreseeable future. Also, 80 percent of Netflix subscribers
Is Netflix, Inc. Actually Creating a Cord Cutting Crusade?
We have heard for years about those pesky millennial cord cutters. The media have regularly reported that millennial consumers do not want to pay outrageous sums of money to watch commercials and subpar service. This is why they are cutting the cord and heading over to Netflix.
Some experts have said that the reports of cable’s death are greatly exaggerated. But are they?
Last month, it was reported by research firm SNL Kagan that more than 800,000 consumers have cancelled their pay TV accounts during the second quarter. This is more than the second quarter of 2015. Over the last year, roughly 1.4 million have cut the cord.
“It is a bit of an acceleration and the biggest quarterly loss that we’ve seen,” SNL Kagan analyst Ian Olgeirson told the Los Angeles Times. “We are seeing a gradual increase in the decline rate.”
It isn’t exactly clear as to how much money the cable industry has lost over the years from cord cutting. In order to fathom just how immense the losses may be, you have to look at this one statistic: ESPN has lost $2 billion in the last two years from cord cutting alone.
Even movie theaters are being affected by cord cutting. Cinema attendance is projected to fall 3.5 percent this year. Some of it is due to the lack of high-quality content. Another hypothesis is because the Internet offers those same titles for a fraction of what it costs to attend a picture house.
Netflix is not only showcasing an abundance of content but it’s also producing critically-acclaimed shows. This means cable providers, satellite providers and movie theaters need to come up with a solution. And the 4D gimmick may not be the answer.