Take note cable companies, more than a third of Netflix subscribers aged 25 to 34 have chosen the online movie rental's streaming service over pay television. That's according to a new survey by Credit Suisse, which also found that about 30 percent of Netflix's subscribers aged 18 to 24 made the same decision.
"Netflix's low cost, subscription streaming service (with improving content) is our biggest worry and could become 'good enough' for consumers with moderate income and TV usage to use as a substitute for pay TV," said Credit Suisse's Spencer Wang.
The survey only pinged 250 Netflix subscribers, but initial findings should be cause for concern for cable operators. According to the survey, 17 percent, or almost one in five, of Netflix subscribers of all ages and incomes have migrated to Netflix's streaming service in place of cable TV.
"In the near term, we submit that Big Media has a small window of opportunity to control its own destiny," said Credit Suisse. "The major U.S. entertainment conglomerates control 70 percent of all TV viewing through its various broadcast, basic cable, and premium TV networks and channels. And, content remains the lifeblood for distribution systems."