Report: More Teens Watch YouTube Than Netflix

More teenagers in the United States are watching YouTube videos than Netflix content, according to a new survey from Wall Street investment firm Piper Jaffray.

The survey of 9,500 respondents found that 37% stream YouTube content compared to 35% who opt for Netflix.

In the previous Piper survey, 37% of respondents streamed Netflix compared to 32% for YouTube.

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“Netflix lost the leading position, but we believe YouTube’s more varied content library is a significant driver,” analysts Michael Olson and Yung Kim wrote in a note. “Specifically, we note that, while YouTube does offer movies and other scripted content for a fee, the YouTube library includes music videos, video game streaming, DIY guides, social media influencer videos.”

That YouTube has supplanted Netflix as a preferred video service among teens shouldn’t be surprising considering the Google-owned platform has long been the No. 1 video platform globally.

Already three years ago, Google said 80% of users from 18 years old streamed YouTube, with mobile use topping broadcast and cable use combined.

“By 2025, half of viewers under the age of 32 will not subscribe to a pay-TV service,” Google wrote.

Notably, Amazon disclosed disclosed YouTube TV is now the 6th most popular Fire TV app followed by PlayStation Vue, Sling TV and AT&T TV Now.

And the No. 1 app? YouTube.

Interestingly, Piper Jaffray didn’t compare YouTube TV with Netflix. Google’s move into online TV has generated about 1 million paid subscribers, about half of Hulu with Live TV’s 2 million subs, according to Bloomberg.

Netflix ended the most-recent fiscal period with more than 60 million domestic subscribers and 151 million globally.

 

Analyst: Netflix Subs Not Likely to Depart for Disney, Apple Streaming Services

The pending launch of subscription streaming video services from Disney and Apple next month has ratcheted up scuttlebutt Netflix will hemorrhage subscribers to the new players.

Not true, according to a new survey conducted by Wall Street firm Piper Jaffray — a perennial bull on Netflix shares.

“Our survey [of 1,500 respondents] suggests that the majority (~75%) of Netflix subscribers do not intend to subscribe to either Disney+ or Apple TV+,” analyst Michael Olson wrote in a note as reported by CNBC.

Olson contends many Netflix subs will try at least one of the new services. Indeed, Netflix co-founder/CEO Reed Hastings has stated publicly that he intends to subscribe to Disney+.

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“Most existing Netflix subs appear to be trending towards multiple streaming video subscriptions, especially as many continue to reduce their spend on traditional TV offerings,” Olson said.

Netflix shares have fallen from historic highs over the past 90 days since it reported poor Q2 subscriber growth numbers worldwide. Indeed, the downturn has erased all fiscal gains in 2019.

The company’s stock was trading at $262 a share at noon Oct. 3 (Eastern Time), about 59% of Piper Jaffray’s target of $440 per share.

“[It] now trades at multiyear valuation lows, suggesting shares reflect much of the upcoming competition risk and periodic sub add volatility,” Olson wrote.

Netflix Eyeing Pricing Changes; Dropping Nintendo Wii Functionality

Netflix reportedly is considering price cuts in select foreign markets, while an analyst in the United States says the SVOD’s domestic subscribers are open to a price increase.

Netflix will also stop streaming access through the Nintendo Wii gaming platform after Jan. 31, 2019.

Bloomberg, citing an interview with Netflix co-founder and CEO Reed Hastings, found the service is considering a fourth subscription option in Asia that would be priced below the $7.99 basic monthly plan. Hastings didn’t disclose many details other than executives were looking into the possibility.

On the home front, analyst firm Piper Jaffray revealed subscribers in the United States would be willing to upwards of 40% more than existing subscription rates, based on a survey of 1,100 Netflix subscribers.

The survey found subs are generally pleased with content offerings – due in large part to more than $8 billion spent on original programming in 2018.

“We believe, as long as the vast majority of subscribers perceive that the service is improving, Netflix will be positioned to periodically increase prices,” Piper Jaffray wrote in a note.

“It would not be surprising to see Netflix bump pricing up across many of its markets in 2019,” wrote the firm.

Meanwhile, with Nintendo phasing out the Wii Shop Channel, Netflix suggested those subscribers affected seek alternative channels to the 12-year-old Wii platform. The service stopped accepting new subs through Wii in July.

“We hope you’ll soon enjoy an even better Netflix experience with additional features on a supported device,” the service said in a statement.