According to the study Choosing Content: Viewing Video, carried out by Parks Associates with 2,500 households responding to the survey questions, 17 percent of premium cable channel customers and 16 percent of video-on-demand pay-per-view customers would consider using an online subscription service such as Netflix Watch Instantly instead of their current viewing choice, with Netflix’s online streaming option being rated higher in terms of customer satisfaction than premium broadcast because of the increased amount of material available, and lower cost.

Commenting on the findings of the report, Parks Associates’ Director of Research Brett Sappington pointed out that “Consumers can pay for a month of Netflix for about the same amount as for two pay-TV VOD movies. Parks Associates research shows consumers know the quality of the [subscription] service is not comparable to pay-TV quality, but the cost-benefit comparison is enough to affect their purchase decisions.”

Parks’ report does point out that premium cable carriers and networks such as HBO have created their own methods of streaming content online in an attempt to position themselves as competitors on a somewhat level playing field with Netflix, but note that “consumer awareness is low and few providers offer subscription [over-the-top] services. Comcast offers an OTT subscription service exclusively to its pay-TV subscribers, and DISH Network offers an online service to its subscribers via Blockbuster. Verizon and Redbox are partnering to offer an over-the-top service later this year.”

From the artilce, "Would you ditch HBO for Netflix?" by  Graeme McMillan.

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