Survey: More Than One-Third Of Millennials Prefer To Watch Netflix On TV Over Cable

Netflix, Inc. NFLX is now the most popular source of TV content in the U.S., according to a Cowen study.

Of those surveyed, 27.2 percent said they prefer Netflix over any other platform. It’s even more popular among those 18-34, with nearly 40 percent in the age bracket picking the streaming service.

For now, traditional TV still reigns supreme, drawing about 43 percent of all respondents between basic cable, premium cable and broadcast. The future doesn’t look rosy for the platform, though: less than one-quarter of Americans ages 18-34 picked traditional TV.

YouTube was took the No. 2 spot for the 18-34 demographic, with 17 percent naming it their platform of choice for TV. Much of YouTube’s draw comes from its global network of private creators, thousands of whom have followings in the millions and publish content multiple times per week.

Companies Fighting To Compete

Wall Street is betting these indicators mark just the beginning of a wave of change in the media industry as Netflix’s competitors scramble to find ways to compete.

Walt Disney Co DIS is working on its own streaming platform, leveraging its vast library of content and resources, while Viacom, Inc. VIA VIAB struck a deal to produce content for Netflix.

A wave of M&A is rolling through the industry and vertically between media and telecom companies, with the most high-profile cases being the recently closed AT&T Inc. T–Time Warner Inc TWX merger and the bidding war between Disney and Comcast Corporation CMCSA for Twenty-First Century Fox Inc FOXA’s assets.

Netflix’s competitors may need to start looking abroad for opportunities. Piper Jaffray recently noted that Google search trends suggest the company will report strong international subscriber growth when second-quarter earnings are announced July 16.

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Photo courtesy of Netflix.