Netflix Users Cut Cable, Satellite At Record Pace: Report

Dennis Faas's picture

Justifying a $50+ month cable or satellite subscription is getting harder to swallow -- particularly when services like Netflix offer a huge database of TV and movie content for just $8 a month. In fact, a new report shows that many people are tired of those hefty cable bills, and are ditching their subscriptions in favor of Netflix.

Dallas, Texas-based media research firm Diffusion Group is responsible for the report, which included a survey of 2,000 American broadband users. The report suggests that Netflix members were twice as likely as non-members to cancel or drastically reduce their cable TV subscriptions than they were a year ago.

1 in 3 Netflix Users Cutting Cable

Back in 2010, Diffusion Group conducted a similar poll and found that only 16 per cent of Netflix customers planned to downgrade or cancel their cable service. Now that number stands at 32 per cent, meaning one in every three Netflix users see less need for cable TV. (Source:

The report also suggests that most respondents who planned a cable subscription reduction cited "the need to save money" as a primary reason for the cuts. (Source:

Netflix Represents Only Tip of Internet Video Iceberg

Clearly the Diffusion Group study only examines the tip of the iceberg.

Bit Torrent has become a major alternative to cable TV viewing, offering users the ability to download TV shows and movies at no charge. There are of course copyright issues to consider here, but that doesn't mean people aren't doing it.

Other services like Apple's iTunes allow users to download similar content without navigating murky legal waters. There's also online streaming sites like and YouTube, which provide users with all kinds of video at the touch of a button.

That said, one cannot ignore the power of Netflix. Recent studies suggest that Netflix accounts for about 1/5 of all Internet traffic, which isn't too surprising given that the company now offers its services not just via PC but also mobile phones, tablets, and game consoles like the Xbox 360 and PlayStation 3.

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