Netflix Eroding Pay-TV VOD and Premium Channels

According to a recent study from Parks Associates, it showed that customer satisfaction with Netflix surpasses both pay-TV VOD and premium broadcast TV in terms of cost and flexibility. With unlimited streaming plans starting at $7.99, pay-TV can’t compete with movies costing around $3.99 each.

Although, Netflix scored lower in picture quality, there are a growing number of viewers who are prepared to trade quality for convenience and cost. With Netflix now offering 1080P streaming, its quality rating is likely to improve.

Pay-TV VOD also has a significant edge over Netflix in terms of up to date content. With cable companies signing deals with content providers in turn for 28-56-day delays on DVD/Blu-ray, it’s tough for Netflix to compete on new releases.

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