20% of Netflix subscribers have gotten rid of their pay TV subscription, according to a June 2013 study from Cowen and Company. The question to ask now is whether more Netflix subscribers will also cut the cord. Typically associated with those in the youngest age bracket, cord-cutting in this study was quite high in the older, 30-44 y/o category, with 41% having cut Pay TV – perhaps signaling a paradigm shift away from paid TV subscriptions overall. Those between 45 and 60 years old were most likely to be Netflix Streaming customers, but only 17% of this group have cut the cord. The majority of Netflix streamers use the service on their PC, followed by streaming on a video game console, while 37% stream on tablets, indicative of their growing role in digital video viewing.
Youtube has, for some time now, been expanding its services into multiple entertainment platforms, but according to a report from the FInancial Times it is now on the verge of revealings subscription services for some of its special video channels. According to the Financial Times report, it will include up to 50 different channels, with subscription prices apparently starting at “as little as $1.99 a month.” For what it’s worth, Google has followed up saying that it’s working on investigating “a subscription platform that could bring even more great content to YouTube.” Which basically seems like it amounts to a yes; a subscription based YouTube could throw a massive wrench into the television and online streaming service industry that exists today. For consumers and advertisers alike, the announcement could mean new opportunities and models, so this announcement is worth taking into consideration.