Will Netflix numbers confirm cable cutting?

A screenshot of Netflix's new design.

 Two things Netflix-related happened last week. One, Netflix released a trailer for the new season of Orange is the New Black. Two, we got more evidence that Netflix is the new cable. 

“People who use Netflix or Hulu are actually almost three times more likely to be in that cord cutter segment,” says John Fetto, senior analyst at Experian Marketing Services. Its data in a new report show nearly 1 in 5 homes with a Netflix or Hulu subscription has no cable. 

Until now, he says, those cord cutters were more hype than reality. “We had never actually seen a real uptick in our data. It was always within the margin of error,” Fetto says. 

But now, he says about six and a half percent of households have only internet service—that’s two and a half million more than in 2010. Not everyone is swayed, though. Live TV still has its perks. 

“Consumers want local news. They want live sports,” says Brett Sappington, director of research at Parks Associates. He says some TV viewers are downgrading instead of cutting their cable when they sign up for Netflix.

And, of course, Netflix wins either way.

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