Here’s an early indication that Netflix‘s high-profile bet on original programming will pay off. About 86% of subscribers say that political drama House Of Cards starring Kevin Spacey makes them less likely to cancel, according to a survey last week conducted by investment firm Cowen and Co. That could be important for Netflix. It’s easy to cancel the service, so execs know they have to keep customers excited. But be sure to take the survey results with at least a little grain of salt: the sample size is small. Only 346 of the 1,229 U.S. consumers surveyed on February 12-13 are Netflix customers, although another 223 are classified as non-subscribers who have access to a Netflix subscription. About 10% of subscribers and those with access to Netflix viewed at least one episode of House Of Cards in the first 12 days after it became available. The average person who tuned in watched six episodes over that period, but 19.4% watched all 13. Viewers were impressed: 36% called the series “exceptional” while 43% deemed it “good.” Despite the small sample size, “if future original programs are as successful as House Of Cards, it likely leads to a stickier subscriber base over time,” says company analyst John Blackledge.
Just as important, 90% of consumers like of the idea of releasing all the episodes of the series simultaneously, instead of spreading them out the way conventional TV networks do. About 10% said that they’re indifferent, and nobody opposed the strategy. And here’s a finding that should worry pay TV providers: 22.6% of Netflix subscribers say that they cut the cord with a cable or satellite service. That would amount to about 6M households nationwide. Due to that relatively small number, “we are not raising the alarm on the cord cutting debate,” Blackledge says. He adds that proportionately more of the people who say that they cancelled pay TV come from low income households: Those with an annual household income of less than $25,000 represent 25% of the national population and 18% of Cowen’s survey respondents – yet they account for 32% of those who told the company that they cancelled pay TV after subscribing to Netflix. That may be one reason why 67.5% of subscribers said that they would not keep their Netflix subscription if it raised its $7.99 a month price.

Yes it’s easy to cancel, but it’s also easy to sign back up! I cancelled during the DVD/Streaming brouhaha last year (upset over the segregation of the integrated queues) but signed up again for streaming to watch HOC. I could just as easily cancel again this month only to renew when Arrested Development airs in April.
Most people will leave their account running. Some frugal consumers might sign up for a month at a time, periodically. Netflix makes it easy for both types of consumers to play.
You say take the sample with a small grain of salt? So what about Neilsons sample. What do we take that with, 100 Vicodine pills ?
House of Cards makes HBO and Cinemax look Average. They have raised the bar as has the script Tyrant, and everyone knows it.
HOC is good, but nothing compared to Deadwood, The Sopranos, Game of Thrones, The Wire, Rome, etc., etc. And Cinemax is off to a great start with Strike Back and Hunted.
Hunted is absolutely dreadful (and I so wanted to like it). It was a huge flop in the UK.
“So what about Neilsons sample. What do we take that with, 100 Vicodine pills ?”
LMFAO.
I watched all 13 episodes of HOC thinking it was going to be a different kind of series, it was not. The show got worse at it went on, and like “network” drama’s it ended with no reslove to the story at all. I will not waste my time on another season of HOC. The whole point of this kind of show, in this kind of format, was to tell a whole story, not just to have another cliffhanger kind of ending. I will say this, the show started off REALLY GOOD, but moved away from the “revenge” (you did me wrong, I’m gonna make you pay) aspect the show it started out as.
What the hell are you talking about? You must not have been paying attention.
SPOILER
Underwood (Spacey) set up Peter Russo b/c he knew he would fail (and literally helped kill him), in an effort to get the VP to step down and take over PA, so now Underwood can be VP, moving up even farther than the Sec. of State job he was promised and then denied in the beginning.
It’s Machiavellian, it’s brilliant!!!!
And I like the cliffhanger that now there will be a murdering VP at the top, just waiting to see if his crime is unraveled.
You don’t know good TV.
Totally agree. I can’t wait to watch it again. It is brilliant.
Nothing original about HOC. All hype. Its a rip off from BOSS..
First of all, it isn’t a rip off a of anything. It is a modernization of a mid-90′s British show of the same name. Netflix has that series too. A lot of the themes and story seems to be heavily influenced by the original.
Secondly, I think this show is extremely well done. In the BBC tradition it is shot and performed more with film standards than television standards. It looks amazing and the content is engaging and well written and acted. I’m not positive that we watched the same show.
I deplored the Netflix debacle and remain incredulous that Reed Hastings still has a job, but hey, we live in a time that rewards failure.
As much as it irked me, I remained a subscriber purely out of laziness.
I am one of those that is less likely to cancel due to HOC — it is that good.
Netflix’s churn rate is around 10% a year so this actually seems like it is making no difference. There’s no indication that the show is reaching the people who are most likely to quit. (Nor did it show that House of Cards was getting people to sign up.)
Obviously, new programming is going to be key to keep people around but I’m not seeing this small survey as doing much to support the $100 million dollar price tag. Also, while people might like the ala carte release style, I’m not sure how beneficial it is; a few weeks since the release and all the buzz and free marketing from people talking about House of Cards the show is already dying down. I think three episodes a week could have helped generate more buzz while also making people happy about getting more than 1 hour a week.
THANK YOU!! Literally was going to mention the churn rate.
-RnsW
They spent almost $500m on advertising last year. I don’t see why it’s a strange concept to spend $100m on creating exclusive content so they have something worth advertising.
Every single Netflix ad I’ve seen since they launched has focused on House of Cards.
Tough to make a final judgement call until the Emmy noms are announced but the buzz of a weekly prestige network drama would have come from Kevin Spacey and David Fincher is not there at all. There would have been 13 Sepinwall and Grantland posts and dozens other blogs and weekly summaries to build hype. Instead that’s all been sacrificed for a week long media hurricane about the virtues or binge watching.
I would be completely shocked if HOC didn’t get any nominations. Robin Wright deserves an Best Actress nom for her work. And I would be more shocked if Arrested Development didn’t get a nom, the show got one every year it was on. I’m not saying they will win anything, but they are going to get noms.
My husband got me a 6 month subscription to Netflix as a Christmas present. I liked it, but didn’t think I’d renew. After The House of Cards, I’m definitely keeping it. I get that you can sign up for a month, watch all the episodes, then cancel. But Netflix is fair. Unlike the cable companies that are ridiculously greedy, Netflix is reasonable and I actually want to support them. Plus they gave me all the episodes at once which is how I love to watch tv! It feels more like an escape. If cable did the same thing, I just wouldn’t bother with it at all. Kudos to Netflix.
Yes, the programming is getting better, but don’t forget that the price of Netflix is not because they want it, it’s because the subscribers rebelled en mass because they got greedy and they know full well that could happen again.
i like house of cards a lot. of course, i watched all 13 episodes in one binge weekend, but, still, i think this concept is a winner for netflix. nice to see them score a win for a change. now they need to make everything available for dvd or streaming. why do they still favor dvd’s over streaming? i don’t get it.
“why do they still favor dvd’s over streaming? i don’t get it.”
It has to do with the licensing they buy and the fact that the studios want a waiting period for streaming, to sell more DVD’s. What’s awesome about Netflix though is that the foreign and indie films show up a lot quicker, which are the ones I prefer anyhow.
If you liked this version a lot, FYI, the original British version of HOUSE OF CARDS is also available on Netflix. 3 seasons of 4 episodes each I think. So the 12 ep British version is being adapted into 26 ep, 2 season US version. Will be very interesting to watch and see the difference.
House of Cards is extraordinary! Writing, acting, direction, the whole thing works! Congratulations to Netflix on this one. And, believe it or not…”Lilyhammer II”
There is nothing original about HOC. Extraordinary is not correct. You must not have high expectations…
I thought it was great watched all 13 and want more. Tell me when.
Zooey looks like she just ran away from a little house on the prairie. The theme music samples throne of kings. Kevin Spacey’s accent might do well on the stage, throtling a Tennessee Williams character. Plot devices are pale imitations of DC politics.
I cancelled Netflix when the split off the streaming from the thru-the-mail DVDs (which effectively doubled the price of the service) and never went back. Doubling the price of their service pissed me off so much that I will NEVER come back,
HOC was addictive. It kept me on the edge of my seat thee entire season. I don’t get how anyone can dislike this show. It quiet literally makes you think if this is really what happens in congress. Hell I cant wait for MORE seasons to come.