Netflix not a cable killer in Canada according to user study
TORONTO — Canadian Netflix users stream an average of about an hour a day, watch another half hour’s worth of content online, and catch another hour and a half of broadcast TV, suggests a study.Most Netflix customers are not so-called cord cutters — a term to describe consumers who have cancelled their cable or satellite plan in favour of other content options — according to the report by the Media Technology Monitor, based on surveys with thousands of Canadians.[np_storybar title=”Q&A: Netflix CEO Reed Hastings on international growth and writing big cheques” link=”https://business.financialpost.com/2013/01/24/netflix-stock-skyrockets-as-ceo-hastings-writes-big-cheques/”%5D It’s been an interesting couple of years for Reed Hastings.The chief executive of Netflix Inc. has seen shares of his video streaming company rise to all time highs and plummet quickly. Netflix has gone international, expanding into 40 countries, but suffered a public relations backlash for a failed attempt to spin off its legacy DVD-by mail service from its video streaming business.Continue reading. [/np_storybar]In fact, Netflix users were found to be more likely than other consumers to shell out for a premium TV package, even while paying $8 a month for the streaming service.MTM estimated that about one in five anglophones were subscribing to Netflix in the fall, while only about five per cent of francophones had the digital service. Users were watching an average of 6.4 hours of Netflix content per week, according to the report.Netflix subscribers appeared to be watching less TV on cable and satellite, tuning in for about 11.3 hours per week compared to the 14.9 hours that non-users were watching. But when adding their Netflix streams and other TV content viewed online, they watched an average of more than 22 hours a week, well above the almost 16 hours for non-Netflix users.While 31% of anglophone consumers said they pay extra for a premium TV package, the figure was 36% among Netflix subscribers.The report also suggests that while most Netflix users are gadget lovers, they don’t do much viewing on smaller screens.Just under half of Netflix subscribers said they owned a tablet and 81% had a smartphone. Still, when asked what devices they used to watch Netflix, 83% said a TV, 47% said a computer, only 20% said a tablet and 16% sometimes watched on a smartphone.In terms of how Netflix viewers divvied up their 6.4 hours a week of viewing, the report suggests that about two-thirds of the time was on TV sets, 27 per cent on computers, and four per cent each on tablets and smartphones.As for demographics, 29% of consumers aged 18 to 34 said they were Netflix users, closely followed by 27% of those aged 35 to 49. Only 14% of consumers aged 50 to 64 and four per cent of those 65 and older had bought into Netflix.Parents were also identified as big subscribers of Netflix. Almost one in three households with children under 12 were estimated to have a Netflix subscription, while the figure was 36% in homes where teenagers lived.