Online video streaming is making big strides every year and Netflix is taking full advantage of it. With more and more people online, network TV are getting a big hit in viewership. For consideration, 42% of Netflix subscribers watches less CBS shows from the non-subcribers. Similarly Netflix subscribers watched Fox 35 percent less, ABC 32 percent less, and NBC 27 percent less.


All these numbers were released from a new report by Michael Nathanson of research firm MoffettNathanson. He also tracked shift in TV viewership over time and estimated a 3% drop in TV viewing. This trend and shift started in 2014 with more people starting to online video streaming services. To keep with this transition, most networks now use a new Nielsen ratings metric called “live plus 7” or just “L7,” which bases audience numbers on how many people watched the show—via DVR or streaming—within seven days after it aired live.

Coming back to Netflix, it played a big part in this shift and amounted almost half for last years drop in network viewers, based on the company’s claim that they streamed 29 billion hours of video in 2015. Going by this trend, Nathanson predicted that Netflix shall account for 14 percent of all TV viewing by 2020.

The most prominent TV company in Netflix streaming service is Disney: people who subscribe to Netflix watch 11 percent more on Disney networks than people without Netflix.

All these numbers from the report are very encouraging for streaming services like Netflix, Hulu and Amazon who trying every bit hard to rule the market.

The reason Netflix is ahead in this race is because of excellent new shows that feature only on Netflix. Another selling point for Netflix is the nature of offering. One can stream any show any time with no requirement of buying more devices to get time-shifted shows.

In the coming future things won’t be that easy for Netflix with other Network TVs having their own streaming service. And at that time, Netflix will have to compete on basis of content and not technology.


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