If it feels like Netflix has taken over the living room, some new research backs up that sense.
Financial firm Cowen Equity Research asked 2,500 U.S. consumers (in a regular, ongoing panel) which programming platform they watch on their TV set. Netflix led the pack at 27%, followed by basic cable at 20%, broadcast at 18% and YouTube at 11%.
Among adults ages 18 to 34, the margin is far more dramatic — 40%, compared with the next-most-viewed, YouTube, at 17%.
When Cowen eliminated cord-cutters from the survey, basic cable came out on top, at 26%. But Netflix was not far behind, at 24%.
Based in part on the survey results, but more on its own updated analysis of Netflix’s financials, Cowen revised its 12-month price target to $430 from $375, maintaining an “outperform” rating on the stock. Thus far today, Netflix is off a fraction at $396.62.
Cowen analyst John Blackledge, the lead author of the report, said he expects Netflix to report 1.2 million new U.S. subscribers and strong results when it discloses quarterly earnings on July 16. He said the quarter would be paced by “an increasingly robust original content slate,” with 452 hours of original programming, up 51% from the same quarter a year ago.
“Netflix continues to ramp its original content offering, including local originals in many international markets,” Blackledge wrote. The increase “is driving near-term sub growth and longer-term sets up the company to be a leading content producer in many of the largest international markets. Owning a leading international content production footprint and ramping relationships across the talent ecosystem should prove beneficial to Netflix’s ability to increase production in those markets, much of which is produced at a lower cost than similar content produced in Hollywood.”
Subscribe to Deadline Breaking News Alerts and keep your inbox happy.