Participation & Audience Rates
"Nielsen* released its 2014 Total Audience Report on Wednesday, and it highlighted something many already assumed: Americans are growing increasingly enamored with streaming services like Netflix and Hulu.
More than 40% of U.S. homes now subscribe to a streaming service, according to the report. The biggest chunk of that, of course, is Netflix, which is in 36% of homes across the United States" (Santus).
*Nielsen Holdings N.V. is an American global information and measurement company with headquarters in New York (USA) and Diemen,[2] the Netherlands.
More than 40% of U.S. homes now subscribe to a streaming service, according to the report. The biggest chunk of that, of course, is Netflix, which is in 36% of homes across the United States" (Santus).
*Nielsen Holdings N.V. is an American global information and measurement company with headquarters in New York (USA) and Diemen,[2] the Netherlands.
Affect on Movie Theater Admission Rates
"The real threat to theaters, however, comes from the rise of streaming and video on demand. Netflix has made no secret of its aspirations to stream movies the same day they premiere in theaters.
In its most recent quarter, Netflix had over 36 million U.S. households subscribing to its streaming service, up more than 20% from the year before. At approximately $100/year, those subscribers will bring in about $3.6 billion in revenue over the next year. Movie theaters in 2014 sold 1.26 billion tickets at an average price near $8, bringing in about $10 billion, far ahead of Netflix, but the trend is clearly working against them. In the next five to 10 years, Americans will likely spend more on Netflix than on movie tickets.
As Netflix knows better than anyone, the American consumer wants to watch movies when and where they please, and in a free-market system, consumers almost always gets what they want eventually" (Bowman).
In its most recent quarter, Netflix had over 36 million U.S. households subscribing to its streaming service, up more than 20% from the year before. At approximately $100/year, those subscribers will bring in about $3.6 billion in revenue over the next year. Movie theaters in 2014 sold 1.26 billion tickets at an average price near $8, bringing in about $10 billion, far ahead of Netflix, but the trend is clearly working against them. In the next five to 10 years, Americans will likely spend more on Netflix than on movie tickets.
As Netflix knows better than anyone, the American consumer wants to watch movies when and where they please, and in a free-market system, consumers almost always gets what they want eventually" (Bowman).