Netflix isn't a pesky, small startup anymore. A new report by Price Waterhouse Cooper indicates that the streaming company now has as many subscribers as traditional cable alternatives. According to the survey of 2,000 pay TV subscribers, 73% say they pay for traditional pay TV--a 3% drop from 2016. 73% is the exact number of subscribers that say they also use Netflix on a consistent basis. With Netflix adding 850,000 US subscribers to top 50 million users this year, Netflix is expected to take the lead shortly.
The report notes that Netflix streaming is soaring across all demographics. Especially among those 50-59 years old, where 63% now stream TV content compared to 48% just last year.
Of course as streaming becomes more popular, incumbent broadband/TV providers have responded by expanding unnecessary usage caps and overage fees, which lets them not only counter lost TV revenues by hiking broadband rates, but also makes cutting the cord more expensive for the end user. Especially since these companies own streaming content is often cap exempt (aka zero rating).
Not everything is rosy in streaming land, however. The report is quick to note that consumers only have so much disposable income to go around, and that, contrary to apparent industry belief, they can't afford dozens upon dozens of individual subscription fees.
"While respondents indicate they have four services on average--including Pay TV and digital services--they only watch about two of those services on a regular basis," notes the report. "Just a quarter of consumers say they can handle using more than four services in addition to Pay TV. Looking for content only adds to the burden."
Of course this push to create fractured silos of exclusive content only makes this problem worse. With every company and their cousin now launching their own streaming service (then stocking it with their own exclusives), there's a real risk of confusing and angering subscribers, which will likely result in a surge in piracy rates if these companies don't tread carefully.