Make us your home page
Instagram

Netflix finds a home with younger and wealthier households

Netflix’s original series House of Cards, a political drama, stars Kevin Spacey as President Frank Underwood.

Netflix

Netflix’s original series House of Cards, a political drama, stars Kevin Spacey as President Frank Underwood.

When a veteran industry analyst released a report last week stating that Netflix was to blame for half the decline in traditional TV viewing last year, he included a number of interesting assessments of how Netflix has changed the way we watch television.

The biggest takeaway: The Netflix effect is more pronounced in younger, more affluent households. Here is a breakdown of some of the findings from Michael Nathanson of MoffettNathanson Research. His analysis was based on a combination of metrics from the media measurement firm Nielsen, company data and proprietary research.

Is Netflix killing TV?

• The time spent streaming Netflix in the United States added up to about 6 percent of viewing hours for traditional television in 2015, up from 4 percent in 2014.

• Traditional TV viewing tumbled 3 percent in 2015, with half of that because of Netflix.

Takeaway: If you want to talk about killing and Netflix, start watching its original series House of Cards. Frank Underwood is probably doing more damage to traditional institutions. But while Netflix hasn't actually murdered conventional TV just yet, it's still a source of much distress.

Young vs. old

• CBS, the broadcaster with the oldest median age, had the biggest decline in TV viewership in Netflix homes compared with non-Netflix homes, with viewership down 42 percent in Netflix homes.

• The largest share of streaming subscribers for Netflix and other services in 2015 was among broadband households younger than 35. It is now 81 percent, up from 72 percent last year.

• The age group with the largest increase in share was 45- to 54-year-olds, which rose to 68 percent in 2015 from 55 percent in 2014.

Takeaway: For future growth in the United States, Netflix needs to focus on older audiences.

Income factor

• Sixty-four percent of households with annual incomes of at least $100,000 and broadband subscribed to a streaming service in 2015, up from 56 percent in 2014.

• Fifty-five percent of homes with household incomes less than $40,000 and broadband subscribed to a streaming service in 2015, up from 44 percent in 2014.

• About 44 percent of households with incomes of less than $40,000 do not have broadband access at all.

Takeaway: Given the high proportion of low-income households without broadband, it will probably be difficult for Netflix to expand its subscriber base among that population.

Netflix finds a home with younger and wealthier households 03/08/16 [Last modified: Tuesday, March 8, 2016 9:23pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, New York Times.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. Trigaux: Closing Iron Yard coding school hits area tech hard but leaders talk of options

    Business

    The coming shutdown this fall of the Iron Yard software coding school in downtown St. Petersburg — announced this month as part of a national closing of all 15 Iron Yard locations — remains a shocking event to a Tampa Bay technology community that dreams big of becoming a major player in the Southeast if not …

    In better days last fall, friends and family of graduates at The Iron Yard, based in the Station House in downtown St. Petersburg, applaud during "Demo Day" when grads of the coding school show off their skills. Despite the local success and strong job placement by the coding school, The Iron Yard is closing all of its 15 locations across the country this summer. [LARA CERRI   |   Times]
  2. U.S. economy gathers steam in second quarter

    Business

    WASHINGTON — The U.S. economy revved up this spring after a weak start to the year, fueled by strong consumer spending. But the growth spurt still fell short of the optimistic goals President Donald Trump hopes to achieve through tax cuts and regulatory relief.

    A government report released Friday showed economic output picked up in the second quarter. 
[Associated Press file photo]
  3. Founder of Tampa home sharing platform questions Airbnb, NAACP partnership

    Business

    TAMPA — A Tampa rival to Airbnb, which was launched because of discrimination complaints on the dominant home sharing platform, has concerns about the new partnership between Airbnb and NAACP announced this week.

    Rohan Gilkes poses for a portrait at his home and business headquarters in Tampa. 

Innclusive, a Tampa-based start-up, is a home-sharing platform that focuses on providing a positive traveling experience for minorities. [CHARLIE KAIJO | Times]
  4. Appointments at Port Tampa Bay and Tampa General Medical Group highlight this week's Tampa Bay business Movers & Shakers

    Business

    Government

    Port Tampa Bay announced that Jamal Sowell has been named director of special projects. Sowell, a former member of the U.S.Marine Corps, will support internal, external and special projects, assist the executive team with management oversight and serve as a liaison on a variety of port …

    Port Tampa Bay announced this week that Jamal Sowell has been named director of special projects. [Handout photo]
  5. Drones restrictions coming at Tampa Bay area airports

    Airlines

    Starting Sept. 1, Tampa International Airport officials will be enforcing new height restrictions for drones and other unmanned aircraft systems, according to a press release.

    In this February 2017 file photo, a drone flies in Hanworth Park in west London. Starting Sept. 1, Tampa International Airport officials will be enforcing new height restrictions for drones and other unmanned aircraft systems,
[John Stillwell/PA via AP, File]