Subscribers Pay 61 Cents Per Hour of Cable, But Only 20 Cents Per Hour of Netflix (allflicks.net)

An anonymous reader writes from a math-heavy report via AllFlicks: The folks at AllFlicks decided to crunch some numbers to determine just how much more expensive cable is than Netflix. They answered the question: how much does Netflix cost per hour of content viewed, and how does that compare with cable's figures? AllFlicks reports: "We know from Netflix's own numbers that Netflix's more than 75 million users stream 125 million hours of content every day. So that's (roughly) 100 minutes per user, per day. Using the price of Netflix's most popular plan ($9.99) and a 30-day month, we can say that the average user is paying about 0.33 cents per minute of content, or 20 cents an hour. Not bad! But what about cable? Well, Nielsen tells us that the average American adult cable subscriber watches 2,260 minutes of TV per week (including timeshifted TV). That's equivalent to 5.38 hours per day, or 161.43 hours per 30-day month. Thanks to Leichtman Research, we know that the average American pays $99.10 per month for cable TV. That means that subscribers are paying a whopping 61.4 cents per hour to watch cable TV -- more than three times as much as users pay per hour of Netflix!"

Comments

uhm, no....

[PublicSchill]

Netflix costs $3 per person for 4 people to view it, but that includes 5 profiles. So realistically it's rare all 5 people want to watch at the same time. So it's quite easy to pay less than that. Cable is usually at least $30 to $40 per month for a household. That's 10x as expensive for the cheapest plans available. Not to mention Netflix doesn't have commercials... You can't compare the average hours per user for cable and netflix. They aren't equal... At best you can compare the cost per person. The number of hours is highly variable, and not to mention it doesn't change the monthly cost anyways...

Re:..doesnt factor in connection cost.

[jbmartin6]

I have Netflix on while on /.. Which probably explains the low quality of most of my posts.