Netflix has become the most popular television service in the U.S. and will only continue growing.
The service now has more American customers than basic cable, says a new Cowen survey.
The Growing Gap
Netflix has now surpassed basic cable as the most popular TV service in the United States. According to a study conducted by Cowen, the gap will only continue to increase. Data shows that the streaming service is especially popular among younger consumers.
For Netflix, both its current achievement and the nature of its primary client base are very good news. The fact that its service is most popular among younger consumers means that there is only room to grow over its competition.
According to the Cowen study, American consumers say they use Netflix over any other video service. The financial research group’s survey placed the video streaming giant at the top rank above traditional television services, Amazon Prime Video, and even YouTube. Both broadcast and basic cable as well as all other streaming and online video services have fallen behind Netflix.
Cowen’s survey focused on consumers between the ages of 18 and 34 years old – Millennials. Again, Netflix held the most popular spot within that specific age group. In fact, 40 percent of survey respondents within that age group said it was their top choice. Its nearest rival was YouTube. That said, Netflix still had a 23 percent lead over YouTube.
Millennials Promise Future Netflix Success
The Cowen research “highlights the importance of Netflix in the home, particularly among millennials,” said John Blackledge, an analyst from the financial research group. He pointed out that one of the steps the company has taken to ensure its future has been its massive and rising investments into new and original programs. These creation of shows that cannot be seen elsewhere “likely ensures [it] the top spot in the living room over time.”
Cowen went ahead and increased his price target for Netflix stock as a result of the survey results and his own predictions. He increased his target from $375 per share to a much more bullish $430.