Majority of Netflix Subs Use Streaming Service

Written by Ryan Lawler

Wednesday, November 4. 2009 at 05:30 PM EST Post a comment

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Nearly two-thirds of Netflix Inc. subscribers have tried out the company's "Watch Instantly" streaming service, and more than half use it at least once a month, according to a survey released by research firm One Touch Intelligence.

The survey, conducted by One Touch Intelligence in conjunction with market research firm Praxi Group, asked 1,000 Netflix subscribers about their viewing habits using the DVD rental company's online streaming service.

The survey findings suggest that usage of the streaming service has moved beyond the early adopter stage and into the mainstream, with 62 percent of subscribers saying they've used the Watch Instantly service at least once. More importantly, though, 54 percent said that they stream at least one movie or TV show per month.

Not only that, but usage was fairly heavy among those who use the service. Watch Instantly users instantly watched an average of six titles per month, with more than 20 percent surveyed saying they watched eight or more streaming videos per month.

Despite calls for a "streaming only" option for subscribers, Netflix CEO Reed Hastings has claimed that most users prefer a subscription service that includes both the DVD-by-mail and streaming options, and the survey bears that out. About 73 percent of respondents say that they watch just as many DVDs as before they started using the streaming service. That compares to about 26 percent who believe they're watching fewer DVDs thanks to the streaming service.

Users are split on where they use the service, with about an equal amount -- 44 percent -- viewing Watch Instantly titles outside of the main TV room as those who view them in the main TV room.

While a fair amount of subscribers watch streaming titles through broadband-connected consumer electronics devices such as Xbox 360 gaming consoles, Blu-ray players, and HDTVs, the majority still stream to their computers.

About 61 percent of respondents stream to a computer that is not connected to a TV, while another 13 percent said they streamed to a computer that is connected to a TV. Another 24 percent of respondents streamed videos on connected devices, meaning more than a third of users are watching streaming Netflix titles on the biggest screen in the house.

Despite increased adoption of Netflix streaming, it hasn't yet led a significant number of users to shun their existing cable TV subscriptions. Only 2 percent surveyed said they had "cut the cord" and cancelled their cable service due to streaming video from Netflix.