A recent survey may serve as a wakeup call to broadcast networks and cable companies that their subscriber base may soon be slipping away. According to a Credit Suisse survey, approximately 30 percent of Netflix users between the ages of 18 and 24 are using Netflix's Watch Instantly service to watch TV and movies instead of paying for cable or satellite TV service. The survey also revealed that 37 percent of Netflix subscribers between the ages of 25 and 34 are doing the same.
“Netflix’s low cost, subscription streaming service (with improving content) is our biggest worry and could become ‘good enough’ for consumers with moderate income and TV usage to use as a substitute for pay TV,” said Credit Suisse’s Spencer Wang and a team of analysts.
As the cord-cutting trend has the potential to eat into the big cable and satellite companies' profits, companies such as Verizon, Dish Network, Time Warner Cable, and Comcast are looking into various options to lure would-be cord cutters with services such as TV on tablet computers.
Of course, Netflix isn't the only streaming option available today. Other services such as Xbox Live, the PlayStation Network, and Hulu Plus have potential to cut into cable and satellite companies' subscriber base as well. Have you cut the cord yet?