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Nielsen Numbers Show More Bad News For Traditional Cable

Now that Nielsen's actually bothering to track Internet video, the data they're collecting shows that pay TV subscriptions are down, while standalone broadband customers are on the rise. For years Nielsen dismissed cord cutting as an errant to non-existent phenomenon, despite the fact it wasn't able to accurately track video consumption on PC, tablet and smartphone. Now that it's actually tracking these numbers, Nielsen's noted skepticism has all but evaporated.

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According to Nielsen's latest data, broadband-only homes are up by 52 percent to 3.3 million from 2.2 million year over year. Meanwhile, pay-TV subscriptions have dropped 1.2 percent to 100.4 million, from 101.6 million this time last year.

Simultaneously, the percentage of homes with subscription video on demand services (Netflix, Hulu, Amazon Prime Instant Streaming) rose 18% to 45% in the second quarter of 2015 from 38% in the second quarter one year earlier. The number of homes with enabled smart TVs rose to 18% from 11%.

Again, these aren't mammoth stats but the trend is pretty obvious, and it's one of several reasons for the recent volatility in major media stocks. Combine stats like these with the fact pay TV is no longer scaling with new housing growth, and the major declines in broadcast ratings, and you've got a lot of big cable and broadcast executives not sleeping quite as well as they used to.

Most recommended from 73 comments



maartena
Elmo
Premium Member
join:2002-05-10
Orange, CA
kudos:5

maartena

Premium Member

Cordcutting is not real!!




Nothing to see. Cordcutting is not real. No one does it. It doesn't exist.
--
"I reject your reality and substitute my own!"

buzz_4_20
join:2003-09-20
Limestone, ME
·Time Warner Cable
·Vestalink
ARRIS SB6141
(Software) Sophos UTM Home Edition
Sophos AP15

buzz_4_20

Member

Times are Changing

Some people are taking the road that offers more choice.
Some people are taking the road that has less advertisements.
Some people are taking the road that costs less.

Some are doing all of the above.

Just like when cars started replacing horses, people aren't giving up on something, they are just changing to something better.

Simba7
I Void Warranties
join:2003-03-24
Billings, MT

Simba7

Member

Traditional cable is dying..

It's been dying for years. Only thing keeping it from dying is the Cable Company CEOs with a defibrillator.

rebus9
join:2002-03-26
Tampa Bay
·Verizon FiOS
·Bright House Net..

rebus9

Member

Near Perfect Correlation

According to Nielsen's latest data, broadband-only homes are up by 52 percent to 3.3 million from 2.2 million year over year. Meanwhile, pay-TV subscriptions have dropped 1.2 percent to 100.4 million, from 101.6 million this time last year.

So we have a 1.1 million household increase in broadband-only, offsetting a 1.2 million household decline in pay TV.

Even Stevie Wonder can see what's happening. It's right there in the numbers. Any media or cableco exec who denies it is either deluded or a liar.

The old pay-TV paradigm is going the way of the 20th century.

ToppestKeks
@frontier.com

ToppestKeks

Anon

It's your duty to subsidize cable TV.

I'll provide the cable MSO response to cord cutting here: "So, you want to cut the cord. Well, that's fine. That's your right as a savvy and/or budget conscious customer. It sure would be a shame, though, if your cable Internet rate suddenly went up, unexpectedly. Or maybe if you suddenly found yourself with a paltry data cap that was obviously designed to thwart OTT video streaming. Sure would be a shame...but we can offer you a great bundle for our deluxe TV and Internet package for only $10 more a month than standalone Internet!"

Cable companies love some good corporate welfare. As more people ditch pay TV, expect to see more expensive Internet rates and implementing of data caps to subsidize their failing business model. But if you don't like it, you can always choose the "competition". *snorts derisively*

How about ..