Internet-Connected Devices, Streaming Boxes Boost Netflix Usage
Why Has Netflix's Stock Price Risen by 21% in the Last Month?
Netflix usage
Internet connected devices have started to become the preferred way to watch Netflix (NFLX).
According to a report from comScore, and as indicated by the chart above, 44% of people prefer to watch Netflix via Internet-connected TV devices. Next in order of preference are desktops or laptops, gaming consoles or Blu-ray devices, and mobile devices.
In its 3Q15 earnings call, Netflix stated that it is observing more usage and growth from both Internet-connected devices and from new streaming boxes introduced by players such as Amazon (AMZN), Roku, and Apple (AAPL).
Netflix benefits from the cord-cutting trend
The preferred way to watch Netflix is via Internet-connected TV devices such as Apple TV and Alphabet’s (GOOG) Chromecast.
The reason more consumers are moving toward online devices is because of the cord-cutting phenomenon. This means that users increasingly prefer to watch content online rather than on television. Netflix stands to gain from this shift in preferences because of its original content, low streaming cost, and ad-free online streaming.
Netflix makes up 5.6% of the First Trust Dow Jones Internet ETF (FDN).
Browse this series on Market Realist: