Netflix and Chill: Why Teens Are Gravitating to Streaming Service

Netflix’s popularity continues to be on the upswing. According to a Business Insider report from October 14 (citing a survey by Piper Jaffray), Netflix (NFLX) appears to be increasingly popular among the teenage population. As the chart below indicates, the survey from Piper Jaffray conducted among 10,000 teenagers indicated that while Netflix enjoyed a popularity of 37% among teens who streamed videos from the service every day, Alphabet’s (GOOG) YouTube came a close second.

Pay-TV services enjoyed a popularity of 25%, while other streaming services like Hulu and Amazon’s (AMZN) Prime Instant Video service were not highly popular with teenagers.

A prime driver of Netflix’s popularity among millennials and teenagers alike could be its original content. Netflix is aiming for content spending wherein 50% will be spent on original content, with the remaining 50% spent on acquired content. The company said at the Goldman Sachs Communacopia Conference last month that it was on track to produce 50% of its original content. It said that its emphasis on original content is to differentiate its content from competitors.

Netflix added, “It’s also somewhat in response to making sure that we have access to content in a world where some integrated producers are trying to figure out what their evolution looks like in terms of their relationship with the consumer over time.”

Netflix was also asked at the conference why its original content is so popular. The company responded that the viewing data from its existing user base was important for the company in terms of matching content to the desired audience. It also believes that the quality of its original content was a deciding factor when it comes to popularity.