Netflix is clearly putting their hopes for the future on their streaming business. After increasing prices, they also announced they would soon spin off the DVD service into it's own business, called Quickster (still hate that name). But Netflix is still pretty far out ahead of their customers on the move to digital streaming. According to Knowledge Networks, more Netflix subscribers use DVD's than the streaming service.
How do Netflix Customers Consume Their Content?
Let's break down the numbers a bit, shall we?
Those polled by Knowledge Networks were Netflix subscribers ages 13-54. So how do these folks use Netflix?
- 29% use DVDs and Blu-Ray discs to watch their Netflix content at least once per month.
- 20% said they use the streaming service to watch Netflix content.
Wait... does that mean that 51% of Netflix subscribers don't even use the service at least once a month? Yikes. That's a lot of free money Netflix is raking in, then, eh?
The study also looks at how customers view content, and there are some interesting stats there as well:
- 44% watch at least once a month (or more) using their TV.
- 30% watch once a month using a computer
- 11% watch once a month or more using a mobile device.
Breaking down usage between DVD and streaming for users who watch via computer:
- 15% of computer watchers use the streaming service.
- 9% of computer watchers use DVD.
Streaming Users Watch More Overall Netflix Content Than DVD Users
The study shows clearly that streaming users watch more overall content than DVD users.
- Streaming users who watch on a TV watch 4.3 TV episodes and 2.1 movies per week.
- Streaming users who watch on a computer watch 2.5 TV episodes and 1.5 movies per week.
- Comparatively, DVD users watching on a TV watch just 2.5 TV episodes and 1.4 movies per week.
See, that's the kind of data Netflix was probably using to make some of the bold changes they've made this year. It clearly shows that streaming users are likely to watch more overall content, which suggests the future of the streaming business is brighter than that of the DVD business.
Other Interesting Netflix Usage Data
It's important to note that this study was performed in July, before the price hike was even announced. And I'm sure that in the wake of that announcement (and the other miscues that followed) there has been some impact to the way users partake of the service.
If the same study were performed today, for instance, it's likely that there would be changes to the balance between DVD and streaming users--simply because many folks have cancelled the DVD service, or left Netflix altogether.
Another interesting finding that could spell trouble for Netflix? 45% of users that also subscribe to a pay-TV service (like cable or dish) would definitely or probably cancel their Netflix service if their TV provider offered content anywhere and the cost was no more than Netflix. And of course... cable providers are rapidly trying to move toward this very kind of thing.