Seeking Alpha

Netflix chips away at pay-TV model

  • Netflix (NFLX +0.2%) holds 48% of the market share of the U.S. households that don't subscribe to a pay-TV service, according to a new report from Leichtman Research Group
  • The percentage of households that subscribe to both Netflix and a cable/satellite service dropped to 80% from 88% a few years ago.
  • Subscriber tallies could be higher for Netflix if not for the 15% of users that admitted to sharing their authentication information.
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Comments (12)
  • StarJonestown
    , contributor
    Comments (33) | Send Message
     
    To point out something incredibly obvious... Netflix IS "pay TV".

     

    At some point, these distinctions will just disappear. Watching content is normally best for the user on a dedicated device, i.e., the television set. Watching it on a computer monitor piped in through an ISP would be next best, then watching it on a mobile device. But the distinctions are increasingly outdated.
    11 Jun 2014, 04:33 PM Reply Like
  • june1234
    , contributor
    Comments (3212) | Send Message
     
    With one big difference. Netflix subscriber pays $9 month to watch what they want when they want vs having to pay $100+ a month for hundreds of channels they never watch. Don't believe 1/2 channels on any contents providers lineup could survive on their own save for the contents providers requirement viewers purchase those as part of their packages.
    12 Jun 2014, 06:48 AM Reply Like
  • biobat
    , contributor
    Comments (3590) | Send Message
     
    Netflix isn't simply $9 a month, it's $9 plus internet. Just like cable isn't $100+ on it's own, that's becoming more of a typical bundle (cable/internet) price.
    13 Jun 2014, 11:14 AM Reply Like
  • GoingLong
    , contributor
    Comments (154) | Send Message
     
    Anyone have a gut feeling on where NFLX stock will be trading over the next few weeks to a month out?
    11 Jun 2014, 05:18 PM Reply Like
  • Derek A. Barrett
    , contributor
    Comments (3534) | Send Message
     
    Netflix can you please score NBA and NFL contracts please???
    11 Jun 2014, 08:10 PM Reply Like
  • James Sands
    , contributor
    Comments (2431) | Send Message
     
    Or better-yet, can NBA.com and NFL.com stream live HD with no blackouts.....
    12 Jun 2014, 12:56 AM Reply Like
  • Derek A. Barrett
    , contributor
    Comments (3534) | Send Message
     
    Exactly...seems like it's always blacked out
    12 Jun 2014, 02:02 AM Reply Like
  • Sakelaris
    , contributor
    Comments (1737) | Send Message
     
    The main thing sustaining cable are a few live sports, most notably football. It will be interesting to see if someday one of those sports would jump the cable ship.

     

    Note also that cable viewers are getting to be older and older.
    12 Jun 2014, 08:56 AM Reply Like
  • James Sands
    , contributor
    Comments (2431) | Send Message
     
    Sakelaris,

     

    I think this will happen. When looking at NFL contracts with the major broadcasters, I believe they end in the 2020/2022 time frame. I think by this time, there may be an opportunity for sure.

     

    Until these contracts are restructured or terminate, I don't think the NFL will broadcast games live on NFL.com. I would pay for this service in a second, same for NBA.com (I may try this next season as you can watch up to 5 teams for about $10/month, depending on blackouts). Typically if you like watching some players/teams not in your area, this seems to be a good deal (not for your particular team though which is lame).

     

    Thanks,
    James
    12 Jun 2014, 10:27 AM Reply Like
  • biobat
    , contributor
    Comments (3590) | Send Message
     
    All of the major sports are already unhinged from payTV. You can buy separate streaming only subscriptions (subject to local blackouts). They ain't cheap though.
    13 Jun 2014, 11:16 AM Reply Like
  • biobat
    , contributor
    Comments (3590) | Send Message
     
    James,

     

    It's already happening. You can pay for the service. It's called NFL Sunday Ticket Max. NBC streams all of their NFL games and the SuperBowl was streamed live on Fox.
    13 Jun 2014, 11:21 AM Reply Like
  • James Sands
    , contributor
    Comments (2431) | Send Message
     
    Thanks biobat, I always find myself fixed to the main NBA/NFL websites. I'll check it out.
    14 Jun 2014, 11:00 AM Reply Like
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