The Rise of Netflix and How the Internet TV Market Has Changed

Press Release – MTM

Canadians are starting to connect the Internet to their TV sets and are changing the way they consume Internet TV services, according to a new study from the Media Technology Monitor (MTM).  The study examines the shifts in the consumption of Internet TV and the company that best symbolizes this change – Netflix.   Among its findings:

  • Internet TV has thus far been complementary to broadcast TV, in large part because it has been consumed on the smaller screens of computers and laptops.  Many Canadians watch TV on the Internet, but they do it for short periods of time (e.g. catch-up TV).
  • With Internet connected game consoles, Blu-ray players and the like, Internet TV is now poised to be consumed on the most important video screen: the TV set.  When it gets there, the MTM data shows viewers watch frequently and for longer periods of time.
  • Netflix is taking full advantage of this shift in the market, as is indicated by its rapid adoption and focus on the TV set. 
  • Rogers’ ISP service has a lower share of Netflix subscribers while most western-based ISPs (eg. Shaw, Telus) have a higher share. 
  • Netflix subscribers report watching less broadcast TV, but virtually all still subscribe to cable TV, satellite and other methods.  As a result, it is too early to conclude that Netflix will change how Canadians receive TV content. 
  • The conditions are in place for this consumer trend to spread rapidly, since the underlying technologies to watch the Internet on a TV set are already in place in a large portion of Canadian homes (e.g. broadband + game console).  

For more information, please contact:

Michael Abraham
Director of Sales and Marketing for MTM BBM Analytics
BBM Analytics
Tel.: (416) 847-2054