Make us your home page

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’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

  1. Airbag maker Takata bankruptcy filing expected in Japan, U.S.


    DETROIT — Japanese airbag maker Takata Corp. has filed for bankruptcy protection in Tokyo and the U.S., overwhelmed by lawsuits and recall costs related to its production of faulty air bag inflators.

  2. Federal agencies demand records from SeaWorld theme park


    ORLANDO — Two federal agencies are reportedly demanding financial records from SeaWorld.

    Killer whales Ikaika and Corky participate in behaviors commonly done in the wild during SeaWorld's Killer Whale educational presentation in this photo from Jan. 9. SeaWorld has been subpoenaed by two federal agencies for comments that executives and the company made in August 2014 about the impact from the "Blackfish" documentary. 
[Nelvin C. Cepeda/San Diego Union-Tribune/TNS]
  3. Legalized medical marijuana signed into law by Rick Scott

    State Roundup

    TALLAHASSEE — Gov. Rick Scott on Friday signed into law a broader medical marijuana system for the state, following through on a promise he made earlier this month.

    Gov. Rick Scott signed legislation on Friday that legalizes medical marijuana in Florida.
  4. Line of moms welcome Once Upon A Child to Carrollwood


    CARROLLWOOD — Strollers of all shapes and sizes are lined up in front of the store, and inside, there are racks of children's clothing in every color of the rainbow.

    At Once Upon A Child, you often as many baby strollers outside as you find baby furniture and accessories. It recently opened this location in Carrollwood. Photo by Danielle Hauser
  5. Pastries N Chaat brings North India cuisine to North Tampa


    TAMPA — Pastries N Chaat, a new restaurant offering Indian street food, opened this week near the University of South Florida.

    The menu at Pastries N Chaat includes a large variety of Biriyani, an entree owners say is beloved by millions. Photo courtesy of Pastries N Chaat.