Report: 17% of HBO users considering switch to Netflix


About 17 percent of those who subscribe to premium cable networks like HBO and Showtime would consider using Netflix instead.

So said a report released Tuesday by Dallas-based research firm Parks Associates. Certainly, it’s a potentially consequential data point if premium cable channels that are experiencing stagnent subscriber growth suddenly face the prospect of having about a fifth of their subscriber bases up for grabs.

But there’s more.

The report also indicated that 16 percent of broadband subscribers would consider using online subscription video-on-demand services like Netflix and Hulu Plus rather than pay for VOD movies on their cable and satellite service.

“Consumers can pay for a month of Netflix for about the same amount as for two pay-TV VOD movies,” Parks Associates director of research Brett Sappington said in a statement. “Parks Associates research shows consumers know the quality of the [over-the-top] service is not comparable to pay-TV quality, but the cost-benefit comparison is enough to affect their purchase decisions.”

Updated: Parks and Associates’ online survey targeted 2,500 broadband households.

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