uploads///most preferred method of watching nflx

Preference for Internet-Connected Devices a Boost for Netflix

By

Aug. 11 2015, Updated 9:07 a.m. ET

More people prefer Internet-connected devices over TV

During its 2Q15 earnings call, Netflix (NFLX) said that it intends to take advantage of innovations in Internet-connected devices. Why? Because Internet-connected devices are now the consumer’s preferred means to watch Netflix.

According to a report from comScore, and as indicated by the chart below, 44% of people prefer watching Netflix via Internet-connected TV devices. Next in order of preference are the desktop and laptop, gaming console or Blu-ray device, and the mobile device.

Article continues below advertisement

Netflix gains from cord-cutting trend

The preferred way to watch Netflix is via Internet-connected TV devices such as Apple (AAPL) TV and Google (GOOG) Chromecast.

The reason more consumers are moving toward online devices is because of the cord-cutting phenomenon. These users 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.

Amazon (AMZN) is competing aggressively with Netflix to grab consumers with its Fire devices. On July 16, Amazon struck an agreement with Time Warner’s (TWX) HBO NOW. This deal will allow HBO’s original programming to be available to viewers on Amazon’s Fire devices.

You can obtain diversified exposure to Netflix by investing in the PowerShares QQQ Trust, Series 1 (QQQ), which invests 0.91% of its portfolio in the stock.

Advertisement

More From Market Realist

  • Honeywell sign
    Earnings Report
    CNBC Pro Stocks to Buy Before Q1 Earnings
  • Men walking by Morgan Stanley headquarters
    Financials
    Morgan Stanley’s (MS) Stock Forecast Before Q1 Earnings
  • Carnival cruise ship sailing
    Consumer
    Carnival's (CCL) Stock Forecast Before Q1 Business Update
  • GameStop store
    Consumer
    GME's Earnings Are Coming: Will It Be Mayday for Shorts or WallStreetBets?
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.