Categorized | TV Business

Cord Cutting?: Without Data, The LA Times Writes The Story It Wanted Anyway

Posted on 26 October 2009 by Bill Gorman

medium_cut-the-cord

There seem to be a few memes that persist in the TV media world even though there is no data to back them up. One is the “Oprah ratings down because of Obama endorsement”, another is “Look at all the people cutting the cord” (i.e. cancelling their subscription TV service).

Recently it’s been spun as an after effect of the economic problems, in today’s LA Times cord cutting is touted as a combination of technology and consumer choice, which of course it is, and the anecdotal examples are charming, but the problem is the data just doesn’t support the fact that it’s a general phenomenon.

In fact, total subscriptions to cable/satellite/telco TV services continue to grow slowly, as they have for many years.

Who knows what will happen in the future, but it’s not happening now!

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10 Responses to “Cord Cutting?: Without Data, The LA Times Writes The Story It Wanted Anyway”

  1. But it is happening now.

  2. William Hughes says:

    I “Cut the Cord” three years ago, after seeing an Advertisment for an “Adult Product” aired during a Children’s Show. Since then I have used the subscription money to purchase commercial-free Programs and Movies on Home Video. Look out people, this is only the beginning!

  3. dumont says:

    I’m seeing some data of year-over-year broadcaster growth in the fall 2009/10, which may be signs of expansion of antenna-served households (still no aggregate cabler data for the 2009-10 season to see if there is cord-cutting going on):

    11 Broadcast Networks + PBS/Independents
    —————————————-
    Wk 2009-10 2008-09
    1 31.3HH/51% 32.7HH/53% (down -4.3%)
    2 31.0HH/51% 30.0HH/51% (up +3.3%)
    3 29.7HH/50% 30.6HH/50% (down -2.9%)
    4 31.2HH/52% 30.1HH/50% (up +3.7%)

    These two weeks of growth numbers are impressive given that last season broadcast was down year-over-year in 47 of 52 weeks (by comparison, last year cablers in aggregate were up year-over-year in 46 of 52 weeks).

  4. Theoacme says:

    The question I have is this: is the rate of overall subscription increase greater than the national household population increase?

    If not, the subscription companies have to be worrying a little bit, as would their shareholders, as they may have to increase their promotional budgets to keep pace with their competitors…

  5. Kay Bradley says:

    I don’t think thy should increase their promotion budgets – but rather increase their service people and quality. Comcast is right next to Exxon in terms of company image. We know why Exxon got there – but does Comcast?

    Our house “cut the cord” about two years ago because Comcast kept screwing up our bill (and funny, it was never to our favor). I use the same money (actually about $10/month less) and hand out iTunes cards the first of the month to everyone – so we all get what we want from premium shows – then use an antenna for the broadcast news and network programming. Plus this arrangement saves me hours of grief on the phone trying to get the billing corrected.

    If all else fails, maybe the cable/Dish companies could lower their fees?

  6. AppleStinx says:

    From the LA Times article: “Common among many who have cut the cord is a sense of rebellion, not against TV but against service providers. They believe their way of watching represents the future of TV — online and on demand.”
    A simple question they didn’t ask of those rebels: “you must have now a fast internet connection to watch high quality streaming video on your computer at home. Who is your ISP?” I bet it’s the same company they’re rebeling against.

  7. Bill Gorman says:

    AppleStinx, indeed, so much about this is contrived. It’s a reported trend that’s not demonstrably a trend, so it has to be spun up to be more than just deciding not to purchase a commercial service. It’s a crusade or some sort of personal redemption or rebellion.

  8. Mikey says:

    Here’s the most embarrassing line in that story:

    “Clearly this is a growing trend,” said Alex Dudley, spokesman for Time Warner Cable

    You’re a spokesman for a major cable operator and you HAVE ACCESS TO THE DATA that shows this is actually not a growing trend. Why would you say this?

    Dudley, do right and find another profession.

  9. Bill Gorman says:

    Mikey, perhaps the trend he’s referring to is the writing of nonsense articles like this one! ;)

  10. Lenore says:

    I am not the unibomber, i.e. still electric connected; but I am broadcast TV / wireless net and phone. VERY little I miss and what I do I am patient enough for NetFlix, reruns and, happily, buy season runs on blu-ray for the rest WITH bonus material!!!


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