Netflix Growth in Premier Subscription Tier Reflects Industry Shift, Says Parks

Thirty percent of Netflix subscribers were in the premium tier earlier this year -- viewing on up to four screens with access to Ultra HD content -- up from 21 percent in late 2017, said Parks Associates Thursday. Subscriptions to Netflix’s basic tier, limited to one screen of viewing and standard-definition quality, dropped from 35 percent to 27 percent, reflecting an industry shift, said the researcher. Many over-the-top-subscribing households “have multiple people who want to watch similar content at the same time,” said Parks' Brett Sappington. “Rather than competing for access, consumers are willing to pay extra for the convenience of multiple streams.” Demand for Ultra HD content is “small, but increasing," the analyst added. Netflix said Monday it "over-forecasted" net subscribers for Q2 (see 1807170002).