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Netflix Subscribers Increasingly Likely to Have a Premium Service

Durham, NH -- November 30, 2012 -- New consumer research from Leichtman Research Group, Inc. (LRG) found that 52% of households in the US that subscribe to a multi-channel video service have a Digital Video Recorder (DVR), compared to 4% of TV households that do not subscribe to a multi-channel video service. In addition, 43% of all households with a DVR now have DVR on more than one TV set. About 20% of all TV households now have DVR on more than one TV set, an increase from 6% five years ago.

The survey also found an increase in Netflix subscribers having a premium service (51% of Netflix subscribers who subscribe to a multi-channel video service this year vs. 43% last year, and 40% in 2010), and a decrease in those who would consider dropping a premium service because of Netflix (20% this year vs. 36% last year, and 32% in 2010).

Other related findings include:

  • 71% of Telco video subscribers, 63% of DBS subscribers, and 42% of cable subscribers, have a DVR
  • 81% with DVR on more than one TV set rate the service 8-10 (on a 1-10 scale with 10 being excellent) -- compared to 73% with DVR on one TV set
  • 70% of all digital cable subscribers have used VOD -- compared to 58% in 2007, and 25% in 2004
  • Overall, 59% of digital cable subscribers, and 64% of Telco video subscribers, used on-Demand in the past month
  • 68% of VOD users who also have a DVR agree (8-10) that their TV service is better because they have both VOD and DVR
  • 26% of Netflix subscribers use Watch Instantly daily, and 59% weekly
  • 79% of Netflix Watch Instantly users use it to watch movies and TV shows on a TV set

These findings are based on a survey of over 1,300 households throughout the United States, and are part of LRG's study, On-Demand TV 2012: A Nationwide Study on VOD and DVRs. This is LRG's eleventh annual study on this topic.

"The percentage of all TV households in the US with a DVR has essentially doubled over past five years, and DVR is functionality is expanding to more TV sets in the home," said Bruce Leichtman, president and principal analyst for Leichtman Research Group, Inc. "Consumers are increasingly integrating DVR, as well as VOD and Netflix, on-Demand TV viewing into their TV viewing patterns."

About Leichtman Research Group, Inc.

Leichtman Research Group, Inc. (LRG) specializes in research and analysis on broadband, media and entertainment industries. LRG combines on-going surveys and analysis with years of hands-on industry experience to provide companies with a richer understanding of the potential impact and adoption of new products and services. For more information about LRG, please call (603) 397-5400 or visit www.LeichtmanResearch.com.

On-Demand TV 2012: A Nationwide Study on VOD and DVRs is based on a telephone survey of 1,304 adults age 18+ (including 101 cell phone calls) from throughout the continental US in households with a TV set. The survey was conducted in September 2012. The random sample of respondents was distributed to best reflect the demographic and geographic make-up of the US. The overall sample has a statistical margin of error of +/- 2.7%.

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