Here’s another reason that Netflix really wants to be on cable boxes: 48 percent of all households without a pay TV subscription have Netflix, but only 36 percent of households who have cable or another form of TV subscription also subscribe to Netflix, according to a new study from the Leichtman Research Group. This divide also impacts engagement: 32 percent of all pay TV subscribers watch Netflix every day, but 53 percent of all cord cutters stream Netflix every day.
Some of this discrepancy may be due to other options. 62 percent of all pay TV households now have a DVR, which offers them another option to binge watch, and that number is up from 41 percent five years ago. And 59 percent of cable households have used their TV provider’s VOD service before, compared to just 46 percent five years ago.
But Netflix executives also think that it’s about ease-of-access. If their service was right next to TV networks like HBO and Showtime, then pay TV subscribers would be more willing to pay, and tune in more often, they believe. That’s why the company has been busy negotiating with TV operators to bring the Netflix app onto cable boxes. After striking some deals with smaller local operators earlier last year, Netflix announced a major deal with Dish last month that will bring the Netflix app to Dish’s Hopper DVR.