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TiVo Research and Analytics: Netflix Not Cannibalizing Traditional TV Viewing

Netflix Homes, Including Those Who View "House of Cards," Watch the Same Amount of Traditional TV as Non-Netflix Homes

SAN JOSE, CA--(Marketwired - Jul 29, 2013) - TiVo Research and Analytics, Inc. (TRA), the largest provider of single-source TV viewing and purchase data for advertisers and TV networks, today released findings from a completed study on the traditional TV tuning behaviors of self-identified Netflix subscribers. Notably, the data showed subscribing to Netflix is not cannibalizing the amount of linear television viewing in TiVo households.

In May 2013, TRA collected 9,956 responses from a survey conducted of TiVo subscribers who have affirmatively opted in to have their set-top-box viewing information collected as part of TiVo's Power||Watch™ panel. The topic of the survey was about opinions and behaviors regarding subscription based over the top services and their original programming. TRA observed historical TV viewing data from those households from November 2012 through April 2013 across 28 of the most watched TV networks and benchmarked them against the total universe of TRA's 1.5 million intab TV households.

Key observations from this study include the following:

  • Netflix does not appear to cannibalize traditional TV: There was no significant difference in the amount of traditional TV viewing between the self-reported Netflix and non-Netflix households, nor did either group differ from the overall TV viewing population.
  • Of the survey respondents 57% stated that they subscribe to Netflix and 18% had watched "House of Cards." 50% also reported they subscribe to Amazon Prime and 18% to Hulu Plus. 8% subscribe to all three over the top services.
  • Netflix households also are heavier viewers of other premium dramas:
    • Households who reported viewing "House of Cards" watched 85% more HBO than non-Netflix households.
    • "House of Cards" households watched Showtime's "Homeland" 125% more than those who don't use Netflix.
    • Netflix households viewed Showtime's "Homeland" 26% more than those who don't use Netflix.

Mark Lieberman, CEO of TRA said, "Our data show that Netflix is not currently a substitute for traditional television, but offers a way for TV lovers to watch more of the kinds of programs they love. The future of television may tell a different story, but as of today we've found that the Netflix subscribers in our study are not watching less traditional TV."

In addition to this survey, TiVo's Power||Watch panelists have completed four waves of surveys about their OTT subscriptions and viewing behaviors that can be matched to traditional TV viewing behaviors through their set-top-boxes. TRA also has the ability to match the purchasing behaviors of these survey respondents with their set-top-box viewing data to further help advertisers reach their target audience. To gain access to this data contact Pierre Bouvard at pierre@traglobal.com.

To learn more about TiVo Research and Analytics, visit www.traglobal.com

About TiVo Research and Analytics, Inc. (TRA)
TiVo Research and Analytics, Inc. (TRA), a wholly-owned subsidiary of TiVo Inc. (NASDAQ: TIVO), is a leading media marketing and analytics software company whose products help advertisers, agencies and television networks improve advertising targeting, accountability and return on media investment within the Automotive, Consumer Packaged Goods, and Pharmaceutical industries, as well as a growing number of client CRM engagements. TRA's web-based Media TRAnalytics® and TV Health Ratings platforms matched the TV advertising households actually receive with the products the same households actually buy, enabling TRA clients to find "The Right Audience®" while providing an unmatched level of transparency, measurement, media planning/selling and improved ROI. TRA clients include Procter and Gamble, CBS, A&E Television Networks, ION Media, Oscar Mayer, Sunovian and Starcom MediaVest Group. More information at: www.traglobal.com.

About TiVo
Founded in 1997, TiVo Inc. developed the first commercially available digital video recorder (DVR). Today TiVo is a global leader in advanced television service for virtually any platform or device. TiVo offers its service directly to consumers, and also distributes its technology and services through solutions tailored for cable, satellite and broadcasting companies. Since its founding, TiVo has evolved into the ultimate single-solution media center by combining its patented DVR technologies and universal cable box capabilities with the ability to aggregate, search and deliver millions of pieces of broadband, cable and broadcast content directly to the television. TiVo also continues to weave itself into the fabric of the media industry by providing interactive advertising solutions and audience research and measurement ratings services to the television industry www.tivo.com.

TiVo, the TiVo Logo, TRAnalytics, 'The Right Audience', Power||Watch and Purchaser Rating Points are trademarks or registered trademarks of TiVo Inc. or its subsidiaries worldwide. © 2013 TiVo Inc. All rights reserved. All other trademarks are the property of their respective owners.