Paid TV continues to shrink as streaming services continue to grow

Streaming video services such as Netflix and Hulu could in some cases be eroding the customer base of premium television broadcasters, according to a new report. NPD Group figures for the period between March 2012 and August 2013 show that the number of subscribers to HBO, Showtime, and other channels have dropped from 38 percent of US households to 32 percent.

Is Netflix putting a dent in premium cable subscriptions? A new study suggests that a growing number of consumers are opting to pay for standalone Internet video services instead of subscribing to HBO or Showtime — although the data does not prove the trend. Total U.S. households that subscribe to HBO, Showtime, Starz and other premium TV channels declined by 6 percentage points over an 18-month span, from 38% in March 2012 to 32% in August 2013, according to a report from research firm NPD Group. Over the same period, subscriptions to Netflix and other subscription video-on-demand services including Hulu Plus and Amazon Prime Instant Video rose 4 percentage points, from 23% to 27%.

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