TiVo: Netflix doesn't cannibalize linear TV viewing

Netflix subscribers watch just as much TV as other TV viewers, according to new research from TiVo (Nasdaq: TIVO) Research and Analytics. In fact, Netflix viewers not only watch Netflix content in addition to linear TV, but they also watch more premium content.

The survey, which queried nearly 10,000 TiVo subscribers, found that of the 57 percent of subscribers who said they subscribed to Netflix, 18 percent had watched "House of Cards," the original series offered by Netflix. In addition, 50 percent said they subscribe to Amazon Prime and 18 percent subscribe to Hulu Plus. About 8 percent said they subscribed to all three over-the-top services.

Interestingly, Netflix subscribers are also heavier viewers of other premium content. Households that said they watched "House of Cards" also watched 85 percent more HBO than non-Netflix households. And "House of Cards" households also watched Showtime's "Homeland" about 125 percent more than those who don't use Netflix. In addition, Netflix households viewed Showtime's "Homeland" 26 percent more than those who don't use Netflix.

TiVo Research CEO Mark Lieberman said that the study's data indicates that Netflix is not currently a substitute for traditional TV but instead a way for TV lovers to watch more kinds of programming.

Last July TiVo purchased ad research firm TRA for $20 million and created a new business unit called TiVo Research and Analytics. TRA already sells its research to 27 networks, including CBS and A&E Television Networks, and 45 advertisers, including Procter & Gamble, Oscar Mayer and Starcom MediaVest Group.

For more:
- see this press release

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