Netflix: Most Customers Prefer Binge-Watching On A TV, Not A Smartphone
Are TVs dead and being replaced with tablets and smartphones? If you ask Netflix, Inc. (NASDAQ: NFLX), the answer is a clear no.
What Happened
Netflix's management said during a briefing last week that most new users sign up to the streaming video platform on a smartphone or computer, Recode reported. But when it comes to watching videos, 70 percent of all users ditch their handheld device in favor of a TV. This compares to 15 percent of users who watch videos on a PC, 10 percent who watch on a smartphone and just 5 percent who watch on a tablet.
Why It's Important
The statistics of video streaming activity could dispel the myth that a large number of Netflix users "finish a long movie on their tablet in bed or watch a documentary to kill some time at the airport," Statista said.
The findings might bode well for Roku Inc (NASDAQ: ROKU) which is best known for offering streaming devices that are either pre-installed in new TVs or can be bought for as little as $29. In fact, Roku sells the "most affordable" streaming media device, according to PCMag.
What's Next
Roku's recent earnings report was accompanied with a concerning outlook for the first quarter that fell short of analyst estimates. Roku investors might be encouraged by the favorable trends in Netflix viewership and the possibility of better-than-expected performance.
You will find more infographics at Statista.
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Photo courtesy of Netflix.
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