17 Mar

More U.S. Households Now Have Netflix Than a DVR… Who Even Has a DVD Player Anymore?

The power of streaming the content you want, when you want it on the device you prefer is not to be underestimated. It’s been a sea-change in how people consume content, and that has led to a shift in the hardware that people use. With Netflix outstripping digital video recorders (DVRs), we have to question how much longer companies will manufacture those devices, which could be problematic for Tivo, a company that has already been contending with built-in DVR functionality inside digital cable set-top boxes. With Google set to unveil a TV streaming service with DVR functionality in the Cloud, it’s looking more and more like the only streaming hardware we may need will be smartphones, tablets, and smart TVs…. no good for all that cable set-top box subscription fee revenue at Comcast and others. Technology evolution…. a great tailwind for some, and a painful headwind for others.

Netflix has hit a new milestone: More U.S. television households now have the streaming service than a digital video recorder, according to a recent study.

About 54% of U.S. adults said they have Netflix in their household — while 53% have a DVR, according to Leichtman Research Group’s annual on-demand study. It’s the first time that households with Netflix (including those that use shared accounts) have surpassed the level of those with a DVR in the history of LRG’s studies. In 2011, according to the research firm, 44% of TV households had a DVR and 28% had Netflix.

Netflix has now eclipsed DVR usage despite the latter having a years-long head start. TiVo’s first digital video recorder shipped in 1999, while Netflix debuted its video-streaming service in 2007 and started the shift away from its DVD-by-mail business. As of the end of 2016, Netflix had 49.4 million streaming subscribers in the U.S., up 10.5% year over year.

Overall, 64% of respondents said they get a subscription video-on-demand service from Netflix, Amazon Prime Video, and/or Hulu.

Source: More U.S. Households Now Have Netflix Than a DVR | Variety

About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

Comments are closed.