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Netflix Appears to Be Eating Nickelodeon Viewers
As Cable and Broadcast Industry Remains Stuck in Denial
by Karl Bode 02:28PM Friday Jun 08 2012 Tipped by caco See Profile
On the heels of new Nielson data showing that cord cutting is not the mythical beast the cable industry pretends it is, futher data indicates that Netflix streaming is having a dramatic impact on at least one segment of traditional TV viewing. Kid-focused channel Nickelodeon is seeing double digit viewership drops of late, raising the question of whether Netflix is partially responsible. Nickelodeon owner Viacom CEO swears that's not the case, but examining the actual data involved there appears to be a direct relationship between Netflix and the children's channel's nose dive:
Bernstein pulled out about 9,500 Netflix streamers and 9,500 non-streamers from a sample of about 35,000 TiVo set-top users. Analyzing viewership of the two groups over the first quarter, Bernstein found that usage among streamers of Nickeloden’s flagship channel dropped 6 percent from the year-over-year average; viewing also declined a whopping 11 percent for Nick Toons and Teen Nick. For non-streamers, ratings actually grew 2 percent for Nickelodeon, 5 percent for Nick Toons and 26 percent for Teen Nick (a huge 37 percent differential).
Where's the biggest hit originating? Customers aren't tuning in to re-runs of syndicated shows when they can get them from their Netflix subscription. Publicly, cable and broadcast executives continue to pretend that Internet video doesn't pose a threat, but privately -- these kinds of viewership hits are the precise reason why the cable and broadcast industry are trying their best to strangle Netflix with licensing rate hikes and new usage caps and overage fees.

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