There are only so many monthly fees people are willing to pay to watch movies at home, and Netflix’s options seem to be dominating those of premium channels.
Home Media Magazine reports Time Warner Cable lost 141,000 premium and video-on-demand subscribers in the fourth quarter of 2010. Meanwhile, Netflix picked up 3 million subscribers in the quarter, part of the 7.7 million it added in the year. A third of new subscribers are opting for the $7.99 streaming-only plan.
While HBO, Showtime and Starz have long since reshaped themselves as sources of original programming, movies do still make up a significant chunk of the channels’ offerings. It stands to reason that Netflix’s rise coincides with their losses.
If you stream Netflix, has the service replaced premium channels for you?
Time Warner Cable Loses 141,000 Video Subs in Fourth Quarter [Home Media Magazine via High-def Digest]