By John Melloy, Executive Producer, Fast Money
An alarming survey by Credit Suisse ( CS) should serve as a wake-up call to the broadcast networks and cable companies, demonstrating that they need to take control of their revenue destiny right now, while they still have some negotiating power. Analysts there found that 37 percent of Netflix subscribers aged 25 to 34 substitute Netflix ( NFLX) for pay television. Almost 30 percent of users between 18 and 24 are using Netflix's streaming service instead of cable or satellite. The Credit Suisse survey was of about 250 Netflix subscribers. "Netflix's low cost, subscription streaming service (with improving content) is our biggest worry and could become 'good enough' for consumers with moderate income and TV usage to use as a substitute for pay TV," said Credit Suisse's Spencer Wang and a team of analysts, in a 50-page treatise on the entertainment industry.
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