The Cable Guy Jim Carrey

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Media


Netflix, YouTube, Apple TV and the Internet at large are supposed to kill off pay TV … someday. But right now, pay TV seems like it is doing okay: Cord-cutting, which was supposed to accelerate with help from tech disrupters, looks like it may be slowing down.

New data from analysts MoffettNathanson shows that the pay-TV business lost about 300,000 subscribers in Q2. But that’s basically flat compared to a year ago, and that’s a change from the year-on-year declines of the previous few quarters.

And after factoring in the housing market — a key driver for pay TV — the research firm concludes that “it appears that cord cutting slowed to an annualized rate of 400k homes, a meaningful deceleration and well below the peak (but still modest) rates of cord cutting seen in 2012.”

cord cutting q2 moffett nathanson

It’s still hard to look at those numbers — and the world around you — and conclude that the pay-TV business is in great shape. Revenue is growing, but that’s because current subscribers are still willing to shoulder rate increases, and that certainly doesn’t seem sustainable.

That’s one of the reasons the pay-TV guys are working on “skinny” TV offerings, where consumers pay a smaller fee for a smaller group of channels, in the hope of keeping customers or adding new ones. That describes both the “HBO+plus a couple dozen channels” packages that Comcast*, AT&T and Verizon are selling, as well as the $30-a-month package Dish Network wants to sell over the Web.

* Comcast owns NBCUniversal, which is an investor in Re/code.



4 comments
drfos
drfos

Chromecast, YouTube, done.

knighttoday
knighttoday

Here is a thought. Stop watching the absolute garbage (the majority of shows on air) and do something productive with our time. The primary blame for overcharging are us, the watching public who keep tolerating companies like Comcast. If even half of the watching public turned off their TVs(cable boxes) for one month I bet comcast would pay attention. But they know we, the general public, are too stupid to act in unison or in a rational manner. we just want to feed our damned additions to this crap.

JMWJMW
JMWJMW

Here's a thought: all the reporting on "cord-cutting" was just reporting on "noise" in statistics.  Not unlike the "global warming" false meme.

mtroute
mtroute

Here's a thought. If I am tired of paying $80-$100 dollars for TV, and I only want a few channels and Comcast offers me an option to cut my bill in half for say 1/3 the channels and I decide its a great deal, Comcast wins. But they also win because now they can slowly raise my rates every year without giving me any more service. After five years my $40 bill is up to $60. So they have me paying 75% of what I was originally paying for %30 percent of what I was originally paying for. Brilliant.

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