According to the latest report from Statista, there are now more people subscribing to Netflix, than cable pay-TV in the US. And this counts all of the cable providers in the US, which amounts to about 48.61 million, while Netflix has about 50.85 million subscribers in the US alone. These are pretty telling numbers and it also shows that cord cutting is definitely real, even though cable providers don’t want to admit that it is. In Q1 2016, the numbers were pretty close, with there being less than 3 million more cable TV subscribers than Netflix, but now Netflix has taken over, at least in the US.
It’s not hard to see why there are more Netflix subscribers than cable in the US. Number one, Netflix doesn’t require a TV or cable box, and it’s much cheaper. Netflix can be had for around $8/month (depending on the plan you get), while cable TV will be closer to $100 when all the taxes, rental fees and such are included. Not to mention the fact that Netflix has a ton of its own content now, which has helped separate it from the cable industry. While cable has hundreds if not thousands of channels, a lot of that content is available on Netflix (commercial free, as well) and it has content that cable TV doesn’t. Like House of Cards, Fuller House and plenty more original content.
Netflix has become a huge threat to cable. To where cable companies like Comcast are actually building in Netflix onto their own set-top boxes. With the XFINITY X1 platform, Comcast has Netflix and Showtime included, so you are able to watch Netflix through your set-top box without needing something like a Chromecast or Roku to watch Netflix on the big screen. It doesn’t really help Comcast a whole lot, but it does keep people interested in Comcast and using their services. Netflix is only going to get bigger and become a bigger threat to these cable companies, who have become complacent. They need to step up and bring the competition to Netflix (Hulu, YouTube and others), who is essentially the new kid in town here.