Netflix: Most Customers Prefer Binge-Watching On A TV, Not A Smartphone

Are TVs dead and being replaced with tablets and smartphones? If you ask Netflix, Inc. NFLX, the answer is a clear no.

What Happened

Netflix's management said during a briefing last week that most new users sign up to the streaming video platform on a smartphone or computer, Recode reported. But when it comes to watching videos, 70 percent of all users ditch their handheld device in favor of a TV. This compares to 15 percent of users who watch videos on a PC, 10 percent who watch on a smartphone and just 5 percent who watch on a tablet.

Why It's Important

The statistics of video streaming activity could dispel the myth that a large number of Netflix users "finish a long movie on their tablet in bed or watch a documentary to kill some time at the airport," Statista said.

The findings might bode well for Roku Inc ROKU which is best known for offering streaming devices that are either pre-installed in new TVs or can be bought for as little as $29. In fact, Roku sells the "most affordable" streaming media device, according to PCMag.

What's Next

Roku's recent earnings report was accompanied with a concerning outlook for the first quarter that fell short of analyst estimates. Roku investors might be encouraged by the favorable trends in Netflix viewership and the possibility of better-than-expected performance.