Netflix Grows While Premium Cable Channel Subscriptions Drop

An HBO exec reading this. (Photo: HBO)
An HBO exec reading this. (Photo: HBO)

An HBO exec reading this. (Photo: HBO)

HBO is soon going to have a bigger breakdown than Amy Jellicoe: a new study reveals that consumers are spending their money on streaming video on-demand services (like Netflix and Hulu Plus) and getting rid of their subscriptions to premium cable movie channels, reports Variety.

In the past 18 months, total U.S. households that subscribe to Netflix and similar services increased four percentage points to 27 percent. However, during the same time, the number of households who shelled out roughly $10 a month for the pay movie channels dropped six points to 32 percent.

The survey was conducted by The NDP Group of just 7,500 households so its base is small and it doesn't mean there's a cause and effect happening here. Survey takers weren't asked if they dropped HBO/Showtime/etc. because they we're funneling that money into a Amazon Prime subscription so they could watch Animal House.

“As [subscription video on demand] services have gained momentum, it’s clear that some consumers are trimming their premium TV subscriptions," said Russ Crupnick, SVP of industry analysis of the NDP Group according to the Verge.

Right, we're sure that 982nd showing of Twilight on Showtime had nothing to do with this either.

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