"First of all, we know that Netflix recently passed the 75 million subscriber mark. And, at around the same time, Netflix CEO Reed Hastings said that Netflix subscribers stream 125 million hours of content every day. So, with some simple arithmetic, we can calculate that 125 million hours spread across 75 million subscribers is 1 and 2/3 hours per subscriber per day.
From Nielsen, we know that a typical hour of cable TV includes 15 minutes, 38 seconds – or 938 seconds – of commercials. Multiply that figure by 1.67 repeating and you get 1,563.3 (also repeating) seconds of commercials per day. That’s 570,616.7 seconds per year, which works out to 158.5 hours. So each subscriber saves him or herself about 160 hours of commercials per year by streaming their content through Netflix."
http://cordcutting.com/people-spend-more-than-twice-as-much-time-on-netflix-as-with-friends/
Time spent on Netflix trumps most activities. The lack of ads helps create the phenomenon of binge watching (watching two episodes of a series back to back). Deloitte believe that 70% of US consumers now binge watch. It's interesting to compare this time spent on Netflix to other companies. Facebook recently made waves announcing that the average Facebook user including Instagram and Messenger spends 50 minutes a day on their products. They are different business models but Netflix's 1.67 hours is way ahead yet their market value of $38 billion pales in comparison to the $340 billion for Facebook. Investors should stay tuned.
http://cordcutting.com/netflix-saves-its-subscribers-from-160-hours-of-commercials-per-year/
At the time of publishing Decisive had a long position in Facebook (FB). The material in this article is for informational purposes only and in no way constitutes a solicitation of business or investment advice. The material has been prepared without regard to any client's or other person's investment objectives. Before making an investment decision you should consider the assistance of a financial adviser and whether any investment or service is appropriate in light of your particular investment needs.
At the time of publishing Decisive had a long position in Facebook (FB). The material in this article is for informational purposes only and in no way constitutes a solicitation of business or investment advice. The material has been prepared without regard to any client's or other person's investment objectives. Before making an investment decision you should consider the assistance of a financial adviser and whether any investment or service is appropriate in light of your particular investment needs.
