RBC's Netflix survey upbeat; Comcast speeds improve


An RBC survey of 1K+ U.S. consumers found 44% stating they use Netflix (NFLX -1.9%) to watch TV shows and movies. That figure is up from 37% a year ago, and represents the first time it exceeds the one achieved by YouTube (43%, up from 40%). Hulu fell to 27% from 28%, and Amazon (boosted by Prime sub growth) rose to 22% from 15%.

2/3 of Netflix users said they're either "extremely satisfied" or "very satisfied" with the service, up from 63% in November. 69% said they're "not at all likely" to cancel their subscriptions, up from 66% a year ago. Those high satisfaction rates could be helpful if/when Netflix goes through with a price hike.

Meanwhile, Netflix's February ISP speed data suggests its direct peering deal with Comcast provided a lift to streaming speeds: Netflix subs using Comcast had an average speed of 1.68Mbps, up from 1.51Mbps in January.

The figure is still below the 2Mbps+ average speeds Comcast subs were seeing as recently as last September, and also trails those for many other top U.S. ISPs. However, the Netflix/Comcast deal only appears to have gone into effect in mid-to-late February.

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Comments (7)
  • Sakelaris
    , contributor
    Comments (2493) | Send Message
     
    Bears and short-sellers can say what they want, but the delivery model of Netflix will increasingly be what people want.
    10 Mar 2014, 05:47 PM Reply Like
  • saminny
    , contributor
    Comments (35) | Send Message
     
    good business, bad valuation. Its really simple.
    10 Mar 2014, 08:04 PM Reply Like
  • Guzman3
    , contributor
    Comments (95) | Send Message
     
    Yes but what is the cost?
    10 Mar 2014, 11:24 PM Reply Like
  • Littlenick
    , contributor
    Comment (1) | Send Message
     
    They dont make any money. 3 people on 1 account. U.S. market is saturated. Put that with rising costs and netflix is in trouble. Remember what happened when they messed with the pricing last time. A good company does not necessarily mean a good stock.
    10 Mar 2014, 08:51 PM Reply Like
  • Sakelaris
    , contributor
    Comments (2493) | Send Message
     
    I notice I can draw out the short-sellers with just a few words. Actually, Netflix might indeed be overvalued at this time and I did not say otherwise. However, any potential competitor will have to try to replicate what it provides and so far none seem to be even trying to do that except for Amazon Prime.

     

    And Amazon Prime, another fine, low-priced service, has a lot of different programming and is thus more of a complimentary service to Netflix rather than a danger. I enjoy both.
    10 Mar 2014, 11:04 PM Reply Like
  • Guzman3
    , contributor
    Comments (95) | Send Message
     
    Honestly, do you still think Netflix is a good stock? Comcast and ISPs will milk it to the point Netflix will be as expensive as HBO and not able to produce originals as much as HBO. Even international ISPs are asking Netflix to pay. HOC was a money maker original on Netflix only not anymore comcast subs can watch it too. Content price has skyrocketed Amazon is not complementary but a fierce competition with 9 original pilot shows at once.
    10 Mar 2014, 11:38 PM Reply Like
  • Sakelaris
    , contributor
    Comments (2493) | Send Message
     
    Guzman: Perhaps you missed, "Netflix might indeed be overvalued at this time."

     

    I also am far from being uncritical of Netflix management decisions, as anyone would know from my numerous posts about how continued DVD rentals will be important.

     

    And indeed, House of Cards got disappointing to me after a few episodes and I stopped watching it. But there are thousands of other choices out there.

     

    Perhaps you hope that the pricing factors you referred to can force us all to keep or resume cable services, where some cable-related streaming service (like HBO Go) will be our medium of choice and a failed Netflix can be bought out for a pittance and will disappear. If that happens, you can celebrate. But if that happens, we as consumers will have less choice, due to the loss of the magnificent Netflix DVD service.

     

    By the way, do you have a similar fervor about seeing the destruction of Amazon Prime's video service?

     

    11 Mar 2014, 08:18 AM Reply Like
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