The No. 1 Reason Netflix Is Destroying Live TV

While most viewers are sticking with live programming, new data suggests that consumers are becoming less interested in watching TV on Hollywood's terms.

For example, according to researcher Parks Associates, 53% of those who are aware of their cable company providing options for streaming content to other devices take advantage of the service -- known as "TV Everywhere" in common parlance. Parks also found that, when given the choice, consumers prefer Netflix (Nasdaq: NFLX  ) to cable video-on-demand or premium channels.

Separately, a June study from comScore found that 17% of users access television content via two or more platforms. Sports, news, and young adult networks count as much as 30% of their viewers as multiscreen users, PC Magazine reports.

This, Fool, is why Amazon.com (Nasdaq: AMZN  ) is reportedly working on a new Kindle Fire tablet. It's also why Google (Nasdaq: GOOG  ) has made the forthcoming Nexus 7 tab a bright-screen powerhouse in hopes of boosting sales through its Google Play audio, video, and e-book storefront.

Like Apple, both companies are betting we'll pay up for the right to choose what we want to watch, when we want to watch it. Netflix CEO Reed Hastings is making the same wager -- and there are at least 1 billion reasons to believe he's right. Netflix served more than 1 billion TV and movie streams to customers last month.

We don't know how well "TV Everywhere" operators such as Comcast (Nasdaq: CMCSA  ) performed by comparison, but if the Parks data is to be believed, the numbers are probably uninspiring. And yet, as an investor, I'd rather not assume. I'd rather work with more data, hence the poll you see below. Please vote to help us understand how and why your viewing habits are changing. And if they aren't changing, we'd love to know that too. And to get the scoop on the positives and negatives driving one of the biggest names in the rise of streaming media, just click here to access the Fool's new premium research report on Apple.

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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of Apple, Google, and Netflix at the time of publication. He also had a long-term call position in Netflix. Check out Tim's Web home, portfolio holdings, and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

The Motley Fool owns shares of Amazon.com, Apple, Google, and Netflix. Motley Fool newsletter services have recommended buying shares of Netflix, Google, Amazon.com, and Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


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  • Report this Comment On July 11, 2012, at 4:30 PM, dlchase24 wrote:

    It may be better to separate the cable users from non cable users. I don't have cable, so most of what I watch is from a specific shows website or Netflix, although I do use my antenna a lot.

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