Netflix Winning on Price if not Quality

According to a study by Parks Associates, low cost and viewing flexibility give Netflix an advantage over pay TV VOD and premium broadcast TV. The study indicates that Netflix Watch Instantly rates higher in customer satisfaction than premium broadcast TV because of these factors. Netflix also topped pay TV VOD in terms of cost.

"Consumers can pay for a month of Netflix for about the same amount as for two pay TV VOD movies," said Brett Sappington, Parks' director of research. "Consumers know the quality of the OTT service is not comparable to pay TV quality, but the cost-benefit comparison is enough to affect their purchase decisions."
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