Americans Love Netflix

A new research report from Knowledge Networks claims that Netflix has transformed the viewing habits of millions of U.S. consumers. The research, which the firm says was conducted a little bit before Netflix's much-discussed changes in its pricing policies, shows that 35 percent of U.S. consumers (ages 13 to 54) use Netflix for streaming or DVD or Blu-ray rentals at least once a month. The research also found that the average Netflix user watches 5 TV shows and 4 movies per week via the streaming or DVD-rental aspects of the service.

Around 20 percent of Netflix users with Video on Demand are watching it less because of their Netflix viewing, but around 10 percent of Netflix subscribers said they were "very likely" to cancel the service if their cable or satellite provider began to offer a similar service at a similar price.

Knowledge Networks also found that a majority of subscribers - 62 percent - use a videogame system for viewing Netflix "Watch Instantly" content on a TV set; other options -- like Internet-connected Blu-ray players and Roku boxes -- are used by 15 percent or fewer of these viewers.

"Netflix has made remarkable in-roads, bringing streaming video and other alternative viewing options to a mass audience," said David Tice, VP and Group Account Director (Media) at Knowledge Networks. "At present, Netflix has a dominant market position in this space -- but cable video on demand (VOD) and other video services are widely available and poised to act as alternatives. Netflix needs to use its remarkable platform to build deeper customer relationships, differentiating itself by offering benefits that speak to subscribers' desire for control, comfort, and convenience."

The online study ("How People Use Over-the-Top TV") was conducted in June 2011 among 1,013 members of KnowledgePanel.