News: Netflix is killing the TV service business!

[pinkadot89]

A new study by research firm The Diffusion Group shows Netflix subscribers increasingly are downgrading their pay TV service, a bad sign for cable and satellite operators contending against the $7.99-a-month unlimited streaming offering.

The firm’s March survey asked 2,000 U.S. adult broadband users how likely they were to downgrade their pay TV service in the next six months. Thirty-two percent said they were likely to either downgrade or cancel altogether, double the 16% who said the same in 2010.

“Despite its rhetorical positioning, both Netflix and pay TV operators have long been aware that there will come a point at which its services are not only dilutive to regular TV viewing, but antithetical to pay TV subscription levels,” said Michael Greeson, TDG founding partner and director of research. “The question for realistic observers has been not if this will occur but when. According to our latest research, that time is upon us.”

Greeson noted that economic belt-tightening also was a likely factor in the survey results, but stressed that a majority of respondents listed the availability of online video as a primary factor in downgrading their pay TV service.

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I think that's pretty interesting. I personally barely watch TV, and when I do it's only new episodes of a handful of shows. Since most shows are off for the summer, I'm hanging out with Instant Watching. We do have cable here, but it's mostly because my parents like to watch TV. My dad doesn't even use Netflix, it's just for me and my mom. When I get my own place, I'll likely not even have cable. Most of the shows I watch have the episodes available online soon after they air, and I prefer movies and having TV show marathons anyway.