One in 10 Netflix subscribers said in a survey conducted by Knowledge Networks that they are “very likely" to ditch their service if their cable or satellite TV provider began to offer a similar service at a similar price.
Such a finding could give Netflix further incentive to ensure that it continues to distinguish its streaming services from other offerings that could emerge.
The June 2011 online study of more than 1,000 people found that Netflix has become a huge deal in American culture: Thirty-five percent of all U.S. consumers (ages 13 to 54) report using Netflix at least once a month for streaming and/or DVD or Blu-ray rentals.
Of course, the study was conducted before the Los Gatos, Calif.-based company announced a price increase over the summer that infuriated many of its customers and led the company to lower its third-quarter guidance in anticipation of subscriber losses for the first time in years.
Still, the study indicates that those customers who stay with Netflix will continue to use the service frequently. Knowledge Networks found that regular subscribers watch, on average, five television shows and four movies per week through Netflix’s streaming or DVD rental service.
A majority of Netflix subscribers stream content on TVs through video-game systems rather than other alternatives like Blu-ray players and Roku boxes, the survey found.
"Netflix has made remarkable in-roads, bringing streaming video and other alternative viewing options to a mass audience," said David Tice, VP and Group Account Director (Media) at Knowledge Networks, in a statement. "At present, Netflix has a dominant market position in this space – but cable video on demand (VOD) and other video services are widely available and poised to act as alternatives. Netflix needs to use its remarkable platform to build deeper customer relationships, differentiating itself by offering benefits that speak to subscribers’ desire for control, comfort, and convenience."
It's some rare good news for Netflix, which is watching its stock price nosedive. It peaked at more than $300 in mid-July, but has lost nearly two-thirds of its value since, trading at just $113 at 12 p.m. ET Friday.
