retail news in context, analysis with attitude

by Kevin Coupe

Talk about disruption.

Variety reports on a new study by MoffettNathanson saying that "in 2015, Netflix accounted for about half of the overall 3% decline in TV viewing time among U.S. audiences ... Moreover, Nathanson predicts Netflix’s total streaming hours as a percentage of TV viewing will continue to rise to about 14% by 2020."

The study makes clear that Netflix hits certain networks harder than others, and in some cases, it appears that households that use Netflix also tend to consume a lot more television programming than households that don't. And, it seems clear that Netflix has a lot of growing still to do. The story points out that "one big challenge for Netflix now will be increasing its reach among older consumers, according to Nathanson, an age group that watches more traditional TV than younger demos."

But while Netflix has challenges, here's a simple statistic - "Netflix’s domestic subs streamed 29 billion hours of video last year," representing roughly six percent of what's called "live plus 7" TV viewing (shows seen within a week of original airing) in the US, up from 4.4 percent in 2014.

This is what can happen when upstart businesses challenge traditional businesses.

By the way ... Netflix begins streaming the fourth season of "House of Cards" today. It is about the political power-grabbing machinations of a con man who seems to have no allegiances except to himself and his own ambitions. And assuming we aren't getting enough of that in the nightly news, "House of Cards" should yet again be an enormous hit. Which will make Netflix's numbers go up even more.

It is an Eye-Opener.
KC's View: