I’m sure this is a shock to everyone out there, but The Diffusion Group believes that Netflix users decrease the amount of PayTV (TM) services that they purchase. In other words, they’re cutting the cable and ditching the dish. And they have a study titled Profiling Netflix Streamers 2011 to prove it.
From the press release:
Though Netflix has gone to great lengths to reassure PayTV operators that its offerings are additive to regular TV viewing and thus not a competitive threat, research now suggests that the ‘Netflix Effect’—that is, growing use of Netflix will lead to PayTV service downgrades and even cancellation—is gaining momentum.
This is the direction of things to come. I’m glad to see it’s getting here as fast as possible.
Update: I like this reply to the study – Who are we kidding? Of course it’s Netflix vs. cable.