Consumers in the United States are increasingly choosing Netflix for their TV entertainment, according to a new Wall Street survey.
Investment firm Cowen & Co. found that 27% of 2,500 respondents in a recent survey chose Netflix, compared with 20% opting for basic cable and 18.1% for broadcast television.
Among the younger 18-24 demo, the percentage of respondents choosing Netflix increased to 40% — ahead of perennial favorite YouTube.
Cowen analyst John Blackledge said the survey underscores how important Netflix has become to the average household, especially among millennials.
The analyst said the subscription streaming pioneer upped original content releases 51% in the second quarter (ending June 30) to 452 hours compared to the previous-year period. Netflix is on tap to spend $8 billion on original content this year.
“[Netflix] continues to ramp its original content offering, including local originals in many international markets,” Blackledge wrote in a note as reported by MarketWatch.
Indeed, Netflix is projected to grow its international subscriber base from 83.6 million subs at the end of 2018 to 255.2 million in 2028.
Daniel Ives, chief strategy officer at GBH Insights, says the cord-cutting phenomenon is continuing to accelerate.
“It’s really about content,” Ives told Al Jazeera. “Netflix [has] really created a content arms war and you’ve sort of seen this across the board with the consolidation across the sector between AT&T, Time Warner, Disney and Comcast … it all speaks to ‘content is king’ in this cord-cutting world.”
“Ultimately, the only way you drive international sub growth is international content,” Ives said. “Whether it’s the Middle East, Africa or other parts of the world you’re trying to penetrate … it has created a new age for content and Netflix recognizes that as they expand internationally, content is the key.”
Netflix announces Q2 results July 16.