Netflix, Inc. (NASDAQ:NFLX) continues to threaten the existence cable TV companies with its video streaming services that continue to gain traction with masses in the U.S.. According to a survey by mobile advertising technology company Marchex, 26% of people who call TV companies usually request for internet only services.
Disturbing Statistics
The shocking revelations come even as more people continue to look for services that can allow them to watch content while on the go, something that TV companies cannot provide. Marchex reports that 60% of people who usually look for internet only service usually end up signing up for an internet-only content service. The survey was carried out on 500 randomly selected phone calls via Marchex’s Call Analytics monitoring technology.
The survey clearly shows that people don’t want to subscribe to old-fashioned TV, opting for services offered by Netflix, Inc. (NASDAQ:NFLX) among others in the video streaming space. In place of TV, customers are aggressively pushing for the internet where they can be able to get the videos they want, which at times includes TV programming. Data from the BI intelligence is already showing that the ongoing frenzy on online content is about to replace TV as a top venue for mass-audience.
Netflix Competition
Netflix has already become a head to head competitor for traditional Cable TV companies having already sliced the old business according to PWC. Cable subscriptions in the U.S among consumers between the ages of 18-24 slipped to 71% this year, down by 6% from levels registered in 2013. Statistics also show that 71% of TV subscribers between the ages of 25-34 still had Netflix, Inc. (NASDAQ:NFLX) subscription up from 51% as of last year.
Credit Suisse notes that Cable TV networks market-share both for the audience and ad revenue has been on a slow decline as people continue to pay attention to handheld devices led by phones, tablets and laptops. Despite the ongoing decline in TV subscriptions, the ad revenue in this space is still higher compared to that of digital media. With the ongoing growth in subscription, Netflix, Inc. (NASDAQ:NFLX) will look to tap into its huge customer base with ads, a move that should bolster its revenue stream.
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