With the proliferation of smart TVs and fast home internet connections, video streaming services experienced rapid growth over the last few years.
TXN consumer spending data from a panel of over 3MM credit card accounts shows that over the past 12 months, the number of people who pay for Netflix grew by 71%, Hulu by 86% and Amazon Video by 67%:
More recently, video streaming companies are making a push into purchasing and producing movies exclusively available on their services, bypassing the movie theater altogether.
This has the movie theater industry worried they might lose their business: why go to the movie theater when you can Netflix and Chill?
Photo by jeknee https://www.flickr.com/photos/jennyandmike/634755425/ licensed under Creative Commons
Using the TXN competitive analysis tool, we set out to find out whether indeed customers of video streaming services are ditching the movie theater.
Turns out it's actually the opposite - streaming services customers spend more at movie theaters than the average consumer:
Customers of Netflix, Amazon Video on Demand and Hulu spent more per person over the past 12 months at Regal Cinemas, Cinemark Theatres, Fandango and AMC Theatres.
For example: Amazon Video customers spent 14.7% more and Netflix customers spent 13.7% more at Cinemark Theatres than the average customer.
But that's only the data for customers who spent on both streaming services and movie theaters. Are there people who stopped going to the cinema altogether?
Our consumer spending data shows that's not the case either:
Over the last 12 months, a much larger proportion of people who pay for video streaming services also go to the movie theaters. For example: 23.3% of video streaming customers also spent money at Regal Cinemas, compared to only 14.5% of our entire panel of over 3MM credit card accounts.
In short, it turns out that video streaming service customers also happen to be the best movie theater customers by any measure.
Cover photo by: Pat O'Malley https://www.flickr.com/photos/sailor_smb/16645632050/ licensed under Creative Commons
Learn more about consumer spending analytics with TXN.