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Streaming Cannibalizes TV Viewing, But Not Ad Dollars

CBS research unveiled last week suggests that streaming on Netflix and other services has started to cannibalize TV. The study found that households with Netflix watch significantly less traditional television than homes without Netflix. According to the New York Times, CBS Chief Research Officer David Poltrack said that while Netflix is a competitor for viewers, it does not compete for ad dollars. Netflix may even offer potential revenue in terms of licensing content, and can help build a viewer base for new shows.

The study also provided some insight about what viewers watch on Netflix. “Less than 10 percent of adult viewing on Netflix was of its much-buzzed-about original series”, such as ‘House of Cards’ and ‘Orange is the New Black’. “A significant amount of other Netflix viewing is popular current television series”, including NBC’s ‘The Blacklist’ criminal drama, ABC’s ‘Once Upon a Time’, and NBC’s ‘Parks and Recreation’.

 

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