A couple of months ago we reported on the diverging successes of Netflix and cable TV companies, noting that the former boasted almost as many paying subscribers as the latter. Well, as of Q1 2017, Netflix has overtaken cable TV companies in subscriber volume, per our review of Netflix’s latest earning statement [pdf] and figures released by the Leichtman Research Group.
[UPDATE – EDITOR’S NOTE: This analysis is original to MarketingCharts.com.]
It’s a fairly academic comparison, comparing apples to oranges in a sense, as Netflix and cable companies have different business models. Still, it serves as a reminder of the expanding reach of Netflix as the pay-TV market slowly shrinks and fragments.
Here are the latest takeaways (all data as of the end of Q1 2017):
Last note: the pay-TV market shed about 410,000 subscribers during the first quarter of 2017, a significant reversal after a fractional gain of 10,000 subscribers in Q1 2016. That loss is even greater when removing internet-delivered providers (which gained 350k subscribers) from the list – widening to a loss of more than three-quarters of a million subscribers.
Netflix’s size relative to the country’s top cable TV providers:
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