Hulu, Netflix Seen As Good Value, Trad TV Stats Dip

The value of TV is declining in some areas. For example, the “perceived value” of free, ad-supported Web sites that air TV shows is slipping, as well as pay TV monthly subscriptions. Subscription video services have a slightly higher value.

According to Hub Entertainment Research, 64% of users say free, ad-supported Web sites such as Hulu either are of excellent or good value. This compares to a 68% number a year ago.

Multichannel video program distributors' subscriptions -- cable, satellite or telco -- are now at a 45% number, down from 49% a year ago. Likewise, premium cable network subscriptions are down -- at 28% versus 32% a year ago. Still, when it comes to the likelihood of keeping a traditional pay TV video package a year from now, 71%, definitely/probably will.  

Only online streaming subscriptions overall are up: 49% versus 46%.

The study says Netflix is growing as an alternative to DVR usage. Now, 18% say DVRs are a “default” when it comes to TV programming versus 20%, while Netflix has improved to 14% from 13% a year ago.

When it comes to the value of discovering TV shows, 19% of respondents said they began watching a TV show “because of posts you saw from friends on Facebook” -- the highest result of eight social-media questions.

The online research from data collected in April 2014 comes from 1,500 TV consumers age 16-64, who watch at least five hours of week and have broadband access



1 comment about "Hulu, Netflix Seen As Good Value, Trad TV Stats Dip".
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  1. Claudio Marcus from FreeWheel, May 30, 2014 at 4:35 p.m.

    Interesting that DVR usage has declined relative to a year ago,while Netflix has improved slightly. Does that mean that people prefer choice over the ability to watch content they are interested in? Unlikely. More likely is that as DVR adoption has increased, usage by the mainstream is lower (because early adopters by definition were more likely to be attracted to the benefit). Adoption and usage of Netflix are rising, but are slowing in growth. Also notable is the power of inertia, as 71% said they definitely/probably will stay with their MVPDs. In short, some clear signs of an evolving ecosystem, but the scale of change is dictated by consumer behaviors, not technology.

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