In the end, no one is really surprised. Netflix keeps betting on the flexibility and versatility of the network, while traditional cable TV services keep losing subscribers. The impact of cord-cutters is much greater across the pond, and according to a study published by Leichtman Research Group, Netflix has just broken through the barrier of 50 million users, surpassing cable for the first time. While many people have both at the same time, it's impossible to deny the trend in favor of streaming.
Why viewers are cutting the cord
Those who decide to cut their cable subscription cite very similar reasons: the service is expensive, there's advertising everywhere, movies repeat endlessly, new material requires additional payments, and there's no possibility to choose or personalize content. The big advantage of cable remains focused on sports, but it's a matter of time before that changes. TV consumption has been completely transformed, and the only way to survive is to turn toward where the demand is. These days, the star of the market is Netflix. The exact combination of internal productions, external licenses, and a reasonable price makes its user base keep growing, a detail already reflected in the overall industry numbers.
The turning point
According to a study published by Leichtman Research Group, during the first quarter of 2017 Netflix surpassed 50 million users in the United States, while cable (combining the so-called 'Top 6') lost half a million users in a year. If we pause and add other technologies like satellite TV and fiber optic services, Netflix still has a long way to go, but in its head-to-head with traditional cable, it's in charge. Of course, Netflix depends on those providers because they mostly bring internet to homes, a detail that has caused several frictions in the past, including net neutrality violations (which in the United States are basically a myth).
Another aspect to highlight is that Netflix's direct rivals (Amazon, Hulu, and YouTube) are also gaining traction, and some shareholders have expressed concern because Netflix isn't growing fast enough (?). One way or another, today the TV is a window to streaming services. Cable in general knows it, and it will have to find a way to adapt.
