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Summary:

The use of online video services is growing quickly in the U.S., and ten percent of pay TV subscribers are getting ready to cut the cord.

Survey says: we are a Netflix nation.

Forty-seven percent of all U.S. households subscribe to Netflix, Hulu Plus, Amazon Prime or a combination of these services, and 49 percent of all households have at least one TV connected to the internet, according to a new study from the Leichtman Research Group about emerging video services. Four years ago, only 24 percent of all households had an internet-connected TV.

That combination of connected TVs and internet video subscriptions is increasingly shaping what we are watching. Forty-nine percent of all Netflix subscribers watch online video programming on a connected device every week, compared to only eight percent of viewers who don’t subscribe to Netflix. And 78 percent of all Netflix subscribers watch their videos on a TV.

Thirty-four percent of the people quizzed for this study said that they watch online video every day, and 61 percent do so every week.

The big and hotly debated question is once again: What effect does all of this have on cable TV? Netflix CEO Reed Hastings has said time and again that his company’s service is complementary to, and not replacing, traditional pay TV — but the Leichtman Research numbers seem to suggest that is is starting to change: In 2010, 88 percent of Netflix subscribers also had pay TV. Fast forward to 2014, and that number is down to 80 percent.

At the same time, the number of cord cutters who also subscribe to Netflix is rising, from 16 percent in 2010 to 48 percent in 2014.

Leichtman’s numbers are echoed by a recent Consumer Electronics Association (CEA) study about the market for U.S. television services. 45 percent of all U.S. TV households watch internet content on their TVs, according to that study. The use of internet TV programming steeply increased from 28 percent in 2013.

Only five million U.S. TV households rely exclusively on internet TV, according to the CEA, but 10 percent of all TV households said that they’re likely to cancel that service in the next 10 months. Altogether, a total of 17 million TV households already don’t subscribe to traditional pay TV, but instead rely on antennas, the internet or a combination of both for TV programming.

  1. We cut the cord for about a year and then came back. We have a Tivo and the Olympics happened.

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  2. Rafael E Gonzalez Saturday, June 7, 2014

    better than cabler and directv

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  3. You can use services like UnoTelly to access Hulu/Netflix if you don’t already live in USA.

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  4. We have been cord cutters for the last 3 years. We started with Netflix only and then added Amazon Prime before also adding Hulu plus. We paid less than $30 a month for our entertainment services which completely beat out the $100 a month we were paying for Direct TV and Cable (which we found we spent more time searching for something random to have on in the background). We love it.

    Now it has become even more of a cost saver. We use Bing rewards to pay off Hulu plus and part (if not half of Amazon prime’s cost). We started this in February and we have paid off Hulu Plus until next February. We have also put $35 onto our Amazon account to help pay for Prime. You can do 30 searches every day on your computer for 15 points and you can do 20 searches on your smart phone for 10 points a day. So you can get 25 points a day in less than 10 minutes total. You then use those points to buy a month of Hulu Plus (420 points) or an Amazon $5 giftcard (475 points). In one month, you can get 750 points which is enough for either. In 2 months you have enough for 3 of either. You keep going and things get paid off quickly.

    For anyone who is cutting the cord or just a video streamer, this is a great set up to help reduce your monthly costs. Check it out.

    http://www.bing.com/explore/rewards?PUBL=REFERAFRIEND&CREA=RAW&rrid=_cf0298ab-add4-dc5f-8421-ff2498b77220

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    1. wow – the effort and sacrifices you describe to justify whatever you’re saving is a depressing read. good for OCD types, no doubt, tho….

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  5. Robert Danks Sunday, June 8, 2014

    The cable TV in Port Angeleles is garbage, lots of scraping the
    bucket for junk. Paid programming is rampant.
    The NETFLIX and other programming is shortened material, along
    with more junk.

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  6. Reblogged this on @stevebanfield and commented:
    I have Amazon Prime and Netflix. Never felt like Hulu had enough content to make it worthwhile for me. However it’s clear that especially for those users who don’t need a lot of sports coverage cutting the cord in favor of iTunes purchases and rentals, Netflix and Amazon is a very viable option.

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  7. Go Figure. These now are the more smarter TV watchers. Plain to See. For myself in my thought as too: – similar soon will I too also go this way. WHY? You say. Well primary sickness of watching 1hour evening show – and seeing only 20 mins of Show time event with 40 mins of repeated annoying crap commercials. PEOPLE ARE SICK OF NONSTOP COMMERCIAL BOMBARDMENT. Fix the problem if you wish – but since you lizards are fairly narrow minded. Here’s a solid suggestion to keeping your viewers. STOP THE COMMERCIAL INTERFERANCE!. Time to have simple catagory commercial channels. So select a block of channels and advertise there. ch for all automotive items. Cars. all manufacturers all car products. Clothing and shoe channel. Food channel. House items channel. Repeat them all here – sure no one will watch. Wait till 5pm when they get hungry. Simply fire up ch 600 get your fast food channel and review what you might wish for dinner. Leave the content to content and no – if at most 1 commercial every 30 mins only. Time for change and this might change peoples minds to simply obtaining Internet programming that DOES NOT HAVE COMMERCIALS.

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