Netflix Claims 10% of Total Television Screen Time in the U.S.
Netflix released its Q4 2018 letter to shareholders yesterday, and one figure jumping out at people is that the SVOD estimates 10 percent of total TV screen time in the United States is customers watching its content. In a footnote, it explains that it serves 100 million hours of content to TVs in the U.S. each day, and that U.S. TV screens are on for roughly 1 billion hours. That breaks down as 120 million homes with 2 TVs on each for 4 hours per day, as well as TV screens in bars, hotels, and other locations, Netflix says, doing the math.
U.S. TVs are Netflix's sweet spot, the letter says, as the service does less well on mobile screens (it doesn't provide numbers here). The service also does less well in other countries, where its market penetration isn't as strong. Looking to its competitors, Netflix says Fortnite is a bigger challenger than HBO. It also notes that a short YouTube outage in October led to a viewing spike on Netflix.
While Netflix will gain some high-profile SVOD (subscription video on-demand) competition later this year, the company says its biggest goal is improving its experience relative to every other screen option facing consumers.
"Our focus is not on Disney+, Amazon, or others, but on how we can improve our experience for our members," the letter says.
HBO Now and Starz enter the top five, showing the popularity of premium original content to subscribers, says Parks Associates.
When prices go up, viewers are more willing to drop their Netflix subscriptions than their pay TV accounts, finds Hub Entertainment Research.
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