A buyer’s primer on who’s NOT subscribing to Netflix
More than 40 percent get service, but a study examines those who don't
January 17, 2017
For years, Netflix saw torrid subscriber growth that outpaced expectations seemingly every quarter. These days it has more subscribers than Showtime and Starz combined.
But at a certain point everything hits a saturation point, and the streaming video-on-demand service appears to be approaching that point in the United States.
A new study examining SVOD subscription rates, from UBS, finds that during November 2016,Netflix subscriptions were steady to November 2015 at 42 percent of all U.S. households.
What’s more interesting, UBS says there’s probably little room for growth.
That’s because there’s a large subset of Americans who simply aren’t interested in or can’t afford SVOD. And Netflix probably can’t turn them.
Who are these people?
UBS offers a profile of SVOD-shunners as part of the report, which is helpful to media buyers. If you’re looking to reach this group, you can feel confident the best way to do it is via traditional media and not SVOD services.
A few characteristics most non-Netflix subscribers share:
♦ They’re older. Nearly two-thirds are over age 55.
♦ They tend to have a lower income, explaining why they don’t want to spend the extra money on entertainment. Three-fifths have household incomes below the national median.
♦ They are behind the curve on technology adoption.
♦ They tend to live in small households of just one or two people.
One possible way to reach them
Most of those factors won’t change.
However, the report does note one potential way to woo slow tech adapters is to offer Netflix as part of a cable bundle. This removes the complications of learning a new delivery system for those who are uncomfortable with technology.
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