There has been a heated debate in the last few years over whether “cord-cutting” — people ditching their expensive cable TV packages — was a trend or an overblown media frenzy, reports Business Insider, which added, in part, that “in the past few quarters, the pay-TV industry has turned in results that make it hard to say “nothing” is going on.

““For the better part of fifteen years, pundits have predicted that cord-cutting was the future. Well, the future has arrived,” industry analyst Craig Moffett wrote in a recent report. The pay-TV industry lost about 762,000 subscribers this quarter, according to MoffettNathanson, which Recode’s Peter Kafka called “a historically horrible number.”

“And it’s not just a blip.

“While the subscribers losses have accelerated in the last few quarters, the trend hasn’t been good for awhile. 

“And the big decline this quarter could mean one bad thing for the pay-TV business: The new streaming TV bundles (vMVPDs), such as Sling TV and DirecTV Now, aren’t going to immediately pull the industry back up. That doesn’t mean they haven’t had some effect. As the chart shows, the outlook without those packages would be a lot worse. Still, they don’t seem to have enough juice to completely counter the trends.

“”The cord cutting acceleration contrasts with the media bull case that [streaming TV packages] will stabilize or improve pay TV declines,” UBS analysts led by Doug Mitchelson wrote in a recent report. They aren’t a set of silver bullets.

“The overarching question that still remains is whether these subscriber losses mean the traditional pay-TV model won’t be as dominant in the digital era as it was before.”

About The Author

Capitol Communicator is a unique online and offline resource for Mid-Atlantic advertising, marketing, public relations, digital and media communications professionals. The e-magazine, e-newsletters and events bring together communications professionals, fostering community and providing important information; news; trends; education; and opportunities for networking, career enhancement, business exchange and showcasing great work. Visit www.capitolcommunicator.com to learn more.

One Response

  1. Monirom Southakakoumar

    Many of us, not just millennials, have realized a long time ago that there’s a better way to consume content — especially serialized content.

    Whether we’re scrolling through our subs on YouTube or accessing our streaming services (Amazon Prime Video, Hulu, HBONow, Netflix, ISIA, Pluto TV, Crackle or a host of paid and free options) we’re paying extra to view no commercials/ads or opting for ad limited packages.

    For local news/content, we’re accessing that through apps on our set-top boxes or phones/tablets. Some of us even spent real cash for a digital antenna ($39 on amazon) to pull in local channels.

    In the process, we’ve cut our cable bill down to just the essential internet connection which runs us $39 – $85 a month. A far cry from the hundreds we used to spend in the past for bundled services and channels we didn’t use. So you can blame the cable companies for the push for us to dump those 500+ channel deals. Then you can blame Apple and Google for allowing us to carry little theaters in our pockets. And last. you came blame bad advertising for the masses tuning out.

    The next gen of advertising on broadcast platforms has to make good on the original promise of informing / entertaining / connecting the masses. This is true regardless of the length of the spot be it 60, 30, 15 or 6 seconds because it takes us only 50 milliseconds to tune out.

    Reply

Leave a Reply

Your email address will not be published.