How Netflix’s Bet on Originals Is Already Paying Off

Netflix original series like “House of Cards” and “Orange Is the New Black” aren’t great for attracting new subscribers — but they’ve become a key way for the No. 1 streaming service to retain them.

That’s according to a new consumer survey by RBC Capital Markets. In a survey of 1,078 US Internet users, the Wall Street firm found that 43% of Netflix customers said original content was a “moderately” to “extremely” important factor influencing their decision to keep the service. In addition, 64% of Netflix subs said they had viewed original content over the last three months, with approximately 20% of those surveyed saying original content made up at least half of their Netflix viewing, according to the RBC study. The survey results “show tentative evidence that original content is a customer retention tool…or an anticipatory anti-churn factor,” RBC analyst Mark Mahaney and associate Brian Peak wrote in the report. “And this is a new element to Netflix that may not be adequately appreciated by the financial markets.”