Analysis for 'Cable TV Operators'

  • Research: Pay-TV’s High Prices Continue Alienating Subscribers

    Cord-cutting is accelerating, and there’s a simple, unsurprising reason why: pay-TV service is just too expensive. For the fifth quarter in a row, that’s the finding of TiVo’s Online Video & Pay-TV Trends Report. In Q4 ’17, in response to the question “What factors influenced you to cancel your cable/satellite service?” the price/too expensive answer grew by 6.6 percentage points vs. Q4 ’16 to 86.7%, its highest level ever.

    Price/too expensive is by far the most important reason, with the second reason, “I use an Internet streaming service” at 39.7%, actually down 8.6 percentage points vs. Q4 ’16. Next was “I use an antenna to get the basic channels on my TV, at 23%, down 4.2 percentage points vs. Q4 ’16.

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  • Cord-Cutting Accelerates, Top Pay-TV Operators Lost Nearly 1.5 Million Subscribers in 2017

    The top 13 pay-TV operators in the U.S., which represent around 95% of the total market, lost nearly 1.5 million subscribers in 2017, double 2016’s loss of 760K subscribers, according to Leichtman Research Group. However, the loss would balloon to nearly 3.1 million subscribers after deducting the 1.6 million skinny bundle or “vMVPD” subscribers that were added in 2017. The 3.1 million multichannel subscriber loss is about 62% higher than the 1.9 million lost in 2016. The top 13 pay-TV operators ended 2017 with approximately 92.2 million subscribers.

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  • Research: Pay-TV Satisfaction is Up, But Price Remains Achilles Heel

    TiVo has released its Q2 ’17 Video Trends Report, finding among other things that satisfaction with the value of pay-TV among subscribers noticeably increased over the prior quarter even as price remains a major concern, and a driver of cord-cutting.

    TiVo found that 31.2% of subscribers said they’re “very satisfied” with the value of their pay-TV service, up 7.5 percentage points vs. Q1 ’17 and 11.6 percentage points over the past 2 years. Another 52.9% of subscribers said they’re “satisfied,” roughly flat with Q1 ’17. Respondents saying they’re “unsatisfied” dropped 6.9 percentage points vs. the prior quarter to 15.9%.

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  • Research: Pay-TV’s High Cost is Creating Huge Industry Vulnerability

    TiVo has released its 16th quarterly Video Trends Report (previously published by Digitalsmiths, which was acquired by TiVo in 2014) and the key takeaway is that pay-TV’s high cost is creating huge industry vulnerability that is already showing up in increased cord-cutting/cord-shaving and higher penetration and use of SVOD services. It also looks possible that interest in skinny bundles could be fueled by their low cost compared to traditional pay-TV.

    TiVo found that in Q4 ’16, 17% of respondents didn’t subscribe to a pay-TV service, and of this group, 19.8% cut the cord in the last 12 months. No surprise, “price/too expensive” was the top factor influencing respondents’ decision to cut the cord, cited by 80.1% of them. But in second position was using a streaming service such as Netflix/Hulu/Amazon, which was cited by 48.3% of respondents.

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  • New Research Highlights Major Challenges Skinny Bundles Face

    New research from consulting firm Altman Vilandrie & Company highlights the major challenges that current and pending “skinny bundles” face. Skinny bundles - which are scaled down, customized and less expensive groups of TV networks - have become a hot industry topic, and are perceived as valuable in pulling cord-cutters and cord-nevers back into the pay-TV ecosystem.

    But AV&Co.’s 7th annual consumer video survey, which is the most extensive research that I’ve seen yet into the prospects for skinny bundles, paints a picture of how narrow the opportunity may in fact be. VideoNuze readers know that I’ve been very skeptical of skinny bundles, whether from Sling TV, PlayStation Vue or soon Hulu and DirecTV Now. The AV&Co. research largely confirms my concerns (see here and here).

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  • Research: Pay-TV Subscribers More Interested in SVOD Than Non-Subscribers

    New research from Interactive Broadband Consulting Group (IBB) suggests that pay-TV subscribers may actually be more fertile targets for adding SVOD services than non-pay-TV subscribers. IBB found that 31% of current pay-TV subscribers plan to add an SVOD service over the next 6 months, vs. 21% for non-pay-TV subscribers.

    The data supports the theory that heavier TV watchers seek more great TV to watch (and therefore are more prone to subscribe to SVOD services which are offering a ton of originals) than lighter watchers. That’s not to say there isn’t also a segment of what I’ve called “entertainment-only’s” who will resist paying for the multichannel bundle which is anchored by expensive sports networks.

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  • Survey: SVOD Usage is Up, But Pay-TV is Still Hugely Popular, Even Among Millennials

    Perhaps the biggest question weighing on the pay-TV ecosystem these days is whether younger viewers who have acclimated themselves to a strictly SVOD diet will eventually become pay-TV subscribers or whether they’ll remain “cord-nevers.”

    The traditional narrative is that as younger viewers settle down, buy a house, make more money and have kids they’ll end up subscribing to pay-TV just like their parents did. With the booming array of inexpensive OTT substitutes, that expectation has become feeling ever more tenuous.

    But a new survey of 1,111 U.S. 18+ year-olds by Clearleap seems to suggest the narrative still has legs, with 91.3% of those over 30 years-old saying they either currently or previously subscribed to pay-TV. That’s a big jump from the 73.5% of 18-29 year-olds that said they have subscribed at some point, which means 26.5% of the age cohort are technically “cord-nevers.” 64.4% of 18-29 year-olds say they currently subscribe to pay-TV while the subscription rate for all respondents to pay-TV was 78.9%.

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  • Survey: Robust OTT Options are Main Driver of Cord-Cutting Interest

    Research firm Magid has released new survey data showing that robust OTT options are by far the most important driver of cord-cutting interest among those who say they’re likely to cut the cord. Magid found that OTT-related reasons were cited by a combined 77% of would-be cord-cutters, up from the 76% that cited OTT reasons in 2014 and 54% in 2013.

    Per the chart below, the top 3 reasons cited by would-be cord-cutters were: “I am satisfied with online streaming options like Netflix and Hulu” (50%), “I can watch the TV shows and movies I like on the Internet” (41%) and “I have entertainment options on the Internet” (41%).

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  • 67% of Pay-TV Subscribers Don't Cite Sports As Justifying the Multichannel Bundle

    Here's some data that contradicts conventional wisdom: in a new survey from Clearleap, 67% of pay-TV subscribers said sports are not the reason they maintain a subscription, citing viewership of programs on other TV networks instead. Even sports fans didn't express a lot of enthusiasm for sports as justifying the multichannel bundle, with almost half citing other programs they watch as requiring a subscription.

    There has always been a strong industry consensus that live sports were the firewall for pay-TV's multichannel bundle. Even as entertainment programming has proliferated in OTT services and elsewhere, the only place to get marquee sports programming was on pay-TV. Therefore, the reasoning went, sports were the "glue" keeping subscribers on board.

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  • Cord-Cutting Accelerates in Q1 '15 as Pay-TV Operators Lose 31K Subscribers

    U.S. pay-TV operators lost 31K video subscribers in Q1 '15, compared to a gain of 271K in Q1 '14, according to analysts MoffettNathanson. The loss was the first time the industry has ever lost subscribers in a first quarter, and signals an acceleration of cord-cutting (or cord-nevering, since it's hard to pull the two apart), contributing to a .5% industry contraction over the past 4 quarters (461K subscribers).

    MoffettNathanson has always tried to put pay-TV results in context with both occupied housing net additions and new household net additions. In Q1, the former declined by 407K, but the latter increased by 1.3 million, suggesting around 900K households were added in the U.S. Despite the gain the industry still lost subscribers.

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  • Cord-Cutting Remains Negligible As U.S. Pay-TV Operators Lost Just 125K Subscribers In 2014

    Despite all the talk of massive cord-cutting being just around the corner, evidence continues to demonstrate that the U.S. pay-TV business remains relatively healthy. The latest, from Leichtman Research Group, shows that the 13 largest U.S. pay-TV operators, which together account for 95% of the market, lost just 125K subscribers in 2014. That was basically even with the 95K they lost in 2013 (see chart below).

    LRG president and principal analyst Bruce Leichtman noted that the 220K subscribers lost over the past 2 years represents just about .2% of the operators' total subscriber base. Of course no business ever wants to lose customers, but given the dramatic rise in OTT usage and subscriber levels, along with the vast array of viewing options, losing just .2% over 2 years seems like a pretty good level of stability (consider that Netflix alone added 5.7 million U.S. subscribers in '14).

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  • Comcast: Over 30% of Xfinity TV Subscribers Now Using TV Everywhere

    Comcast said that in 2014 over 30% of its Xfinity TV subscribers used its TV Everywhere app ("Xfinity TV Go") on a monthly basis, representing a 20% year-over-year growth rate. The average Xfinity TV Go viewer watched over 7 hours per month via the app, up 40% vs. a year ago. Comcast said the Xfinity TV Go app for iOS and Android has been downloaded over 11 million times.

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  • Survey: Consumers' Cord-Cutting Intentions Remain Muted

    Interest in cord-cutting remains relatively muted according to new data from Frank N. Magid Associates. The firm, which has been surveying consumers' attitudes towards cord-cutting each of the past 4 years, found 2.9% of respondents agreeing they're "very likely" to cancel their pay-TV service in the year ahead, a slight uptick from 2.7% found in 2013, 2.2% in 2012 and 1.9% in 2011.

    Magid noted that the "very likely" level jumped to 4.9% for 25-34 year-olds, but dropped to 1.4% for those identifying themselves as ESPN viewers (live sports are widely believed to be the most formidable bulwark against cord-cutting).

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  • Broadband is a Booming Business, Especially for Cable Operators

    Broadband Internet access is a booming business in the U.S., especially for cable TV operators. According to data released last Friday by Leichtman Research Group, the top U.S broadband ISPs (accounting for 93% of the market) added nearly 384K subscribers in Q2 '14, the most since Q2 '09.  Q2 '14 additions were 29% higher than those in Q2 '13 and 16% higher than those in Q2 '12.

    Because the law of large numbers is working against broadband ISPs, adding even the same number of subscribers year-over-year is impressive, while adding more is even harder to do. For example, at the end of Q2 '12 there were 80.3 million broadband subscribers in the U.S., while at the end of Q2 '14 there were 85.9 million.

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  • VideoNuze Podcast #229: Cord-Cutters are Satisfied; TV Everywhere Lags

    I'm pleased to present the 229th edition of the VideoNuze podcast with my weekly partner Colin Dixon of nScreenMedia.

    Earlier this week Colin's firm nScreenMedia released new research, finding among things, that cord-cutters are mostly satisfied without pay-TV service. Colin provides his take on the data, noting in particular that just 9% of respondents missed sports, which suggests cord-cutters are mostly self-selected non-sports fans.

    We also zero in on millennial cord-cutters and their attitudes. Both of us believe the data counters a quote from Time Warner CEO Jeff Bewkes this week related to millennials, that "Once they take the mattress and get it off the floor, that's when they subscribe to TV." That's been true in the past, but it will get a lot harder given the range of video choices now available.

    We then turn our attention to TV Everywhere and recent research showing that while it is valued by those who use it, adoption still remains relatively low. We dig into why this conundrum is likely to continue.



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  • Research: Cord-Cutters Mostly Satisfied Without Pay-TV Service

    New research from nScreenMedia (my weekly podcast partner Colin Dixon's firm), has found that among pay-TV cord-cutters, 37% said they were "extremely happy and will never go back to pay-TV," with another 47% saying they're "pretty happy with the decision." Conversely, 8% said they were "pretty unhappy with the decision" and 9% "hate it and wish they had the service again."

    The overwhelming lack of remorse suggests cord-cutters have been able to cobble together mostly adequate OTT substitutes to pay-TV.

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  • U.S. Broadband ISPs Add 1.2 Million Subscribers in Q1 '14, Most in 2 Years

    The top 17 U.S. broadband ISPs added nearly 1.2 million subscribers in Q1 '14, notching the best quarter of growth since Q1 '12 (see chart below). These ISPs now have 85.5 million subscribers, with top cable operators accounting for nearly 59% or 50.3 million and top telcos accounting for 41% or 35.2 million. The data is according to Leichtman Research Group.

    The top cable operator ISPs garnered 83% of the quarter's 1.2 million subscriber additions, vs. just 17% for the telcos. This compares with Q1 '13, when the top cable operator ISPs took 72% of net additions, with telcos taking 28%. LRG notes that Q1 subscriber additions historically account for more than Q2 and Q3 additions combined.

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  • Top U.S. Broadband ISPs Add Another 2.6 Million Subscribers in 2013

    The 17 largest broadband ISPs in the U.S. added over 2.6 million subscribers in 2013, down almost 105K vs. the approximately 2.7 million subscribers they added in 2012. These ISPs now have 84.3 million subscribers, with cable TV operator ISPs having 49.3 million (58%) and telco ISPs having 35 million (42%). The data comes from Leichtman Research Group.

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  • U.S. Pay-TV Industry Loses 105K Subscribers in 2013, First-Ever Loss

    The U.S. pay-TV industry lost 105K video subscribers in 2013, the first time in history that the industry has contracted on a year-over-year basis. The industry ended 2013 with approximately 94.6 million subscribers vs. 94.7 subscribers at YE 2012. The 105K loss is a swing of 280K vs. the 175K the industry gained in 2012. (see chart below)

    The data comes from Leichtman Research Group, which has tracked the top pay-TV operators' video subscriber numbers for years.

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  • Let's Get Real: TV Isn't Close to Dying and Here's a Great Slide Deck Proving It

    There is no doubt the TV industry is changing dramatically, largely due to the rise of online and mobile video viewing. But is it "dying," "imploding" or being "nuked" as some recent tech media headlines assert? No, not yet anyway. As a close observer of all things video, it's just mind-boggling sometimes to see how data is conflated to support distorted conclusions. If your company's product strategy were guided by today's headlines alone, you'd be on a course to disaster.

    To help set things straight, Piksel's Alan Wolk has put together a really good slide deck with data debunking 7 of the bigger myths floating around these days (1) cord-cutting is a mass movement, (2) kids ignore mainstream TV, (3) your pay-TV provider is the one forcing you to pay for 800 channels, (4) cutting the cord lets you stick it to the cable company, (5) second screen is all about social TV, (6) TV viewing has decreased and (7) in the future we'll be able to watch TV wherever, whenever and however we want.

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