Analyst: Parents use Netflix to avoid commercials
Here's an aspect of the commercial-skipping phenomenon that might often go overlooked: parents who rely on streaming services like Netflix, as well as video on demand and DVRs, to keep their little ones' minds from being polluted by ads.
Sanford C. Bernstein analyst Todd Juenger's theory is that programmers of children's television -- specifically Viacom and Disney -- should limit the amount of programming they make available to Netflix and charge more for it. The commercial-avoidance afforded by the video streamer further supports that theory, he noted in a report to investors. The programmers should also be more picky about when they make the content available, he said. He recently conducted focus groups consisting of a total of 16 "moms" in which he found that "content control, commercial avoidance and time management" were their top considerations when choosing programming for their kids. The moms also told him that they had originally subscribed to Netflix for themselves, but because of a "dwindling supply" of offerings for adults, they now use the service mostly for their children -- who, he adds, don't seem to much care which device they use for viewing. TV sets, computers, tablets and phones are all fine with them. And the more they watch Disney and Viacom (which owns Nickelodeon) programming that way, the less valuable it is to those companies, he says. "Viacom and Disney should do everything in their power to steer viewership toward modes with the best long-term economics, namely traditional TV and emerging forms of TV Everywhere VOD," he wrote. There has been a "negative impact of Netflix on Disney's and Viacom's kids' TV ratings."