Analysis for 'Sanford Bernstein'
Thursday, September 16, 2010, 10:12 AM ET|Posted by Will RichmondThe U.S. pay-TV industry, which as a whole lost multichannel video subscribers for the first time in Q2 '10, may be heading for a soft 3rd quarter as well. As Multichannel News reported yesterday, Time Warner Cable's CFO Rob Marcus said at a conference this week that Q3 "video net losses are pacing ahead" of where they were in Q3 '09. He attributed the downturn to recession-related factors of high unemployment, high home vacancy rates and slow new home formation. Though that's a fair explanation, it's only one element in a perfect storm pay-TV operators now find themselves battling.
Aside from the above recession-related matters, pay-TV operators are also up against belt-tightening that's rooted in basic household economics. As Craig Moffett at Sanford Bernstein pointed out in a note last weekend, in the past 25 years, cable and satellite spending has increased from 1/2 of 1% of discretionary spending to 1.4%, a growth rate that's triple other household discretionary line items.
« Previous | Next »
See additional research »
Video Research Around the Web
- As streaming surges globally, Roku is falling behind abroad Protocol
- World-Wide Streaming Subscriptions Pass One Billion During Pandemic WSJ
- Cable Now Controls Nearly 70% of U.S. Fixed Broadband After Biggest Year Since 2008 Next TV
- Cord Cutting’s Worst Year Ever: Analyst B&C
- Disney Plus Will Surpass Netflix in Customers by 2026, Research Company Says Next TV
- Tubi Says Streaming Rose 58% In 2020, With Half Of Viewers Younger Than 35 Deadline
- U.S. SVOD Revenue Spiked 39% in Q3 to $5.5 Billion Next TV
- What Are Consumers Willing To Pay For Ad-Free TV Content? Mediapost