Some consumers may be deserting cable and satellite TV for streaming services, but for many pay-TV customers, Netflix and its ilk continue to be complementary to traditional television.
Exactly how many people have both pay-TV and Netflix is not totally clear. According to a new study by consulting firm PwC, the majority of pay-TV subscribers — about 65% — claim they now have Netflix, up from 41% in 2013.
But is that really true? The figure seems improbably high: Overall in the U.S., the net number of Netflix subscribers increased 19.7% over the last 12 months, from 31.1 million in the third quarter of 2013 to 37.2 million in Q3 2014. Nielsen estimates that there are about 100.6 million pay-TV households in the United States, indicating Netflix’s penetration rate among that base should be under 40% — far less than the PwC survey’s findings.
Read More