1 Running head: CORD CUTTING: A DIGITAL REVOLUTION 1 Cord Cutting: A Digital Revolution of Media Consumption Francesca Schirripa University of Miami
2 CORD CUTTING: A DIGITAL REVOLUTION 2 Abstract The traditional pay television industry has captivated American audiences for over 80 years. The introduction of over-the-top streaming services in 2007 has structurally altered the longestablished, direct model of video content reception. Cord cutting, which refers to the cancellation of pay TV subscriptions and receiving content primarily over the Internet, has accelerated over the past few years. For a small price, such services as Netflix, Amazon Prime, and Hulu offer à la carte, on-demand programming and supply a wide variety of content without time restrictions or linear schedules. Mostly occurring among the millennial generation, cord cutting is gradually disrupting the model of the MVPD business. This digital shift has brought upon opportunity of viewing alternatives, influenced consumer-viewing habits, and radically changed the media marketplace.
3 CORD CUTTING: A DIGITAL REVOLUTION 3 Cord Cutting: A Digital Revolution of Media Consumption Traditional pay television was once the ultimate entertainment necessity for homes across America. Insatiable viewers were hooked on their TV providers, whose signals provide a plethora of channels and packaged content. To receive pay TV, consumers simply pay a monthly subscription fee to a multichannel video programming distributor (MVPD), whether it is a direct broadcast satellite (DBS) provider like DirecTV or Dish, a cable provider like Comcast or Time Warner Cable, or a telephone company provider like Verizon FiOS or AT&T U-Verse. Since 2010, there has been a growing rise in cord cutting that has adversely affected pay TV s industry margins. Cord cutting is the process of cancelling MVPD subscriptions and replacing it with either over-the-air (OTA) free broadcasting, or, more commonly, over-the-top (OTT) streaming services using high-speed Internet ( Definition of Cord Cutting, n.d.). Some of the most popular alternatives include OTT services like Netflix, Amazon Prime, Hulu, and HBO Now. It is absolutely necessary to be informed about this topic because the trend has sculpted the industry s streaming media dynamic and ultimately revolutionized television consumption entirely. Cord cutting has become a prevalent topic of debate among all leading media companies. While many industry executives view these changes as a disruption and threat to the traditional pay TV industry, others view it as an exciting time in programming and entertainment, and use it as an opportunity for growth. The purpose of this paper is to generate a better understanding of the cord-cutting phenomenon. The goal is to explore the shift in media consumption habits along with its implications, specifically regarding the future of pay TV. The first portion of this paper will discuss the evolution of television consumption and the rise of cord cutting. Next, it will give an explanation of cord cutter demographics and statistics. Then, it
4 CORD CUTTING: A DIGITAL REVOLUTION 4 will provide a rationale regarding why exactly consumers are making this decision. Finally, the paper will explain cord-cutting s market impact, review how cable, DBS, and telephone companies have adapted to the industry changes, and ultimately predict whether or not pay TV can survive the competitive climate. Evolution of Cord Cutting Since the late 1930s, television has played an undeniable role in captivating society s attention and interest. From the beginning, watching television was considered a community activity as friends and families joined around a single set to watch the daily news or latest sitcom provided at a specific hour and channel a concept known as live linear television. With the advent of digital video recorder (DVR) and OTT services, consumers no longer have to wait for a network to decide for them when they could watch, and what type of shows are offered. Now, they are able to view a multitude of content at their own convenience on any Internet-connected device. In order to predict the future of television, it is crucial to understand its past. This portion of the research will break down the progression of television consumption habits and the rise of cord cutting. The year 2007 is significant because Netflix introduced the concept of streaming content over the Internet. According to The Guardian, 2007 is argued to be the cornerstone of the cordcutting revolution (Zambelli, 2014). Over the next two years, Netflix partnered with electronics companies to stream its content on Xbox 360, Blu-ray players, and set-top boxes. In 2010, Netflix was available on the Apple ipad, iphone, itouch, Nintendo Wii, and other devices. Over the years, Netflix has won several Emmy Awards, and expanded its business into original content programming including shows like House of Cards and Orange is the New Black.
5 CORD CUTTING: A DIGITAL REVOLUTION 5 Amazon Prime, Hulu, HBO Now, and other services followed their footsteps, establishing overthe-top streaming as a strong alternative to traditional broadcast network television. Perhaps the first real sign of cord cutting was revealed in 2010, which marked the first year that pay TV operators (made up of cable operators, satellite TV operators, and fiber-based operators) experienced quarterly subscriber declines, also known as subscriber churns. SNL Kagan, a leading media consulting firm, reported the progression of such subscriber losses from 2017 to 2016 (Young et al.; see Figure 1). According to a 2013 Nielsen study, the number of Zero-TV households, homes neither using OTA broadcasts nor subscribed to cable or satellite television service, rose from two million to five million from 2007 to First-ever customer losses were logged in 2013, and continued to decline through In 2015, cable, DBS, and telco lost an aggregate 1.1 million subscribers (Lenoir, 2016). That same year, Experian Marketing Services found that 7.3% of U.S. homes are cord cutters, bringing the total to 8.6 million households ( Cross Device Video Analysis, 2015). Online streaming subscriptions are indeed growing while pay TV subscribers are declining, but it remains unclear whether or not cord cutting is a real threat to MVPDs. In 2010, Glenn Britt, the CEO of Time Warner Cable, said that, There s no evidence that [watching TV online is] causing [people] to drop their cable or satellite or phone subscriptions other than in very, very small numbers (James, 2010). This epidemic is important to continue exploring, as television consumption is an inescapable part of modern culture and will shape how generations to come receive entertainment, news, education, culture, and more. In the next section, the paper will discuss the demographics and statistics surrounding cord cutting. Demographics of Cord Cutters
6 CORD CUTTING: A DIGITAL REVOLUTION 6 The demographics portion of this essay will begin with a quote from Kirk Parsons, senior director at the marketing information services company, J.D. Power: The streaming video customer experience appears to be stratifying across the different subscriber segments, with pay TV service still having a major effect on the overall streaming video experience. Part of the reason is demographics (Effler, 2016). Next, we will briefly discuss who exactly is cutting the cord, factors that affect whether or not consumers cut the cord, and lastly, discuss the different types of video streamers. Concentration Among Millennials In July 2016, GfK s 2016 Ownership and Trend Report reported that 25% of U.S. homes do not subscribe to a pay TV service. (Schwindt, 2016a). About 17% of this quarter relies on broadcast signals while 6% use Internet streaming services. In households that include people ages 18-34, 22% consumers use broadcast signals and 13% use the Internet to receive TV (Schwindt, 2016a). Most research indicates similar data pointing to the conclusion that millennials are more likely to cut the cord as opposed to ages 35 and older. For example, Pew Research Center data indicate that 65% of those ages 18 to 29 have pay TV services at home, compared to 73% of adults ages 30 to 49, and 83% of those ages 50 and older (Horrigan & Duggan, 2015). The speculation is that after a millennial moves out of his or her family home, he or she would prefer not to spend money on a pricey subscription bill (Steel & Marsh, 2015). Interestingly enough, a 2015 Nielsen study suggests that the decision to cut the cord and rely solely on Internet streaming services will only last until millennials start families. The study separated millennials into three groups: dependent adults living in someone else s home (mostly
7 CORD CUTTING: A DIGITAL REVOLUTION 7 their parents home); people on their own (or living in their own home without children); and people starting a family (or living in their own home with children) (Steel & Marsh, 2015). The study found that pay TV penetration was highest among dependent millennials (88%), lowest among millennials on their own (72%), and higher again among millennials starting a family (79%) ( The State of Traditional TV, 2016). When millennials have kids, they may fall into similar viewing patterns they had while growing up with their parents (see Figure 2). Glenn B. Enoch, senior vice president for audience insights at Nielsen, stated, We think behaviors could change once the so-called millennials start having families due to parents desire for better children-friendly programming (Steel & Marsh, 2015). Geography Nielsen reported that those who live in rural areas or small towns are less likely to cord cut and adopt broadband streaming services as an alternative to pay TV. This is due to the fact that digital services may not be optimal in these parts of the country. Those who live in urban areas are more likely to cord cut and adopt streaming services, as premium broadband services tend to be more accessible (Steel & Marsh, 2015). Income According to Pew Research Center, cord cutters are more likely to live in lower income households (Horrigan & Duggan, 2015). Strategy Analytics found the typical cord cutter is young, educated, and employed millennial. Compared to their future selves, twenty-something s make less money. Pew Research Center gathered that in homes whose annual incomes are $20,000 or below, 21% have cut the cord, and in households above that income, only 14% have cut the cord (Horrigan & Duggan, 2015). Cord Nevers
8 CORD CUTTING: A DIGITAL REVOLUTION 8 J.D. Power concluded that though the number of cord cutters has increased, a majority of video streamers still subscribe to pay TV in addition to a streaming service. According to their survey, 4% of streaming customers are cord nevers; 13% are cord cutters; 23% are cord shavers; and 60% are cord stackers (Effler, 2016). According to The Diffusion Group, a considerable amount of Generation Y millennials and younger Generation Z consumers identify as cord nevers, which is a term used to describe those who have never subscribed to pay TV ( Streaming Services Have Big Impact, 2016). The Diffusion Group surveyed 999 millennial cord nevers, and found that around 3 in 4 [said] that being fine with subscription services like Netflix or Hulu was relevant in their decision to forego legacy pay TV. ( Streaming Services Have Big Impact, 2016; see Figure 3) Additionally, of 81% of millennial cord nevers, 9 in 10 feel that these online services are enough to fit their needs. Nielsen found that in Quarter , streaming video services became on par with DVR penetration as it reached half of U.S. households ( Streaming Services Have Big Impact, 2016). Cord Shavers Cord shaving occurs when consumers reduce their pay TV packages to save money and add over-the-top video subscriptions to their viewing cycles (Perlberg, 2014). Cord shaving is seen in older segments like the year-old Generation X, along with the 50 years-and-older Baby Boomers. Cord shavers sign up for cheaper, skinny cable bundles that may not include cable channels like TNT, USA, or ESPN. These consumers intend to only pay for the channels they consume, as opposed to paying for a typical expensive cable package that may include channels they are uninterested in. For example, a cord shaver may subscribe to a $10-50 skinny cable bundle, and separately pay for an $8.99 Netflix subscription to satisfy their viewing needs (Perlberg, 2014).
9 CORD CUTTING: A DIGITAL REVOLUTION 9 Cord Stackers A cord stacker is a customer that subscribes to both a traditional pay TV service as well as a streaming video service (Lafayette, 2016). This customer stacks one service on top of the other. Though cord stacking is the most expensive option as a viewer, cord stackers have the most viewing options. According to a survey by J.D. Power, cord stackers are the most satisfied customers compared to cord cutters, cord nevers, and cord shavers (Lafayette, 2016). J.D. Power conducted a survey that measured the level of satisfaction among video streaming costumers. Cord stackers scored at an 826 out of 1000, cord shavers scored an 822, cord nevers scored an 807, and cord cutters scored an 802. According to these data, satisfaction is higher among viewers who do subscribe to traditional pay TV compared with those who do not. Perhaps these data suggest a positive forecast for the future of pay TV s relevance; however, this topic will be explored in a later portion of this research (Effler, 2016). Reasons Why Consumers Cut the Cord This section will investigate what exactly motivates consumers to cut the cord. According to Ooyala, an Internet video company founded in 2007, there are three key reasons behind dropping an MVPD and adopting alternatives: the opportunity for viewing alternatives, the shift in viewing behaviors, and the evolution of marketplace factors ( State of the Broadcast Industry, 2016). Opportunity for Viewing Alternatives The U.S. media and entertainment industry currently offers an overabundance of choices for viewing platforms, increased mobility of consumption, flexibility and convenience, and opportunity for content substitutes. Consumers can decide among a range of devices to receive content from. Experian reports that television is still the king of video, estimating that over 80%
10 CORD CUTTING: A DIGITAL REVOLUTION 10 of U.S. adults still watch live programming content on a TV every week ( Cross Device Video Analysis, 2015). However, consumers are no longer restricted to consumption from traditional television; they can view from smart phones, tablets, laptops, smart-tvs, Apple TV, Roku etc. Device owners are exceedingly more likely to cut the cord compared to non-device owners. Households are 24% more likely to cord cut if at least one resident owns a smart phone, 28% more likely if a resident owns an iphone, and 15% more likely if a resident owns any tablet, and over 21% more likely if a resident owns an ipad ( Cross Device Video Analysis, 2015; see Figure 4). Data suggest 68% of Americans use Internet TVs to connect their televisions to the Internet, 20% use video game consoles, 16% use DVD/Blu-Ray players, 13% use Roku, 9% use Apple TV, and 5% use Google Chromecast ( Cross Device Video Analysis, 2015; see Figure 5). As stated above, consumers were once limited to watching something at a fixed time, channel, and place. Now, there is increased mobility to receive content out of the TV room and out of the home. Millennials spend one-third of their time consuming content using connected devices like laptops and mobile devices ( State of the Broadcast Industry, 2016). A society and generation built upon convenience would prefer to have control over their viewing experiences and consume content according to their own schedule. For younger generations and cord nevers, free content alternatives like YouTube are more attractive than cable subscriptions. Additionally, original programming on Netflix, Hulu Plus, and Amazon Prime offers exclusive, top-rated content; for example, Netflix won Emmy Awards for House of Cards and Orange is the New Black; the success of these shows may provide incentive for pay TV to cord cut and subscribe to Netflix. Shift in Viewing Behaviors
11 CORD CUTTING: A DIGITAL REVOLUTION 11 Ad sensitive consumers are more attracted to and tolerant of online streaming as opposed to traditional pay TV ( State of the Broadcast Industry, 2016). As streaming video has become more prevalent, the typical advertising model has taken a more targeted and personalized approach. If consumers are exposed to ads that are related to their interests, they are ultimately provided with a more enjoyable viewing experience. Hulu, for example, implemented this concept and designed a feature called AdSwap. The feature puts complete control in the hands of the user by enabling them to instantly swap out of an ad they are watching for one that is more relevant ( Hulu AdSwap, 2016). Google s Ads Preferences Manager provides a similar customization option. Just as consumers are more tolerant of personalized ads, they are also increasingly drawn to receiving personalized content. Most OTT streaming platforms tailor to customer desires and preferences by providing content recommendations. This digital technology facilitates the consumer s decision-making process, and exposes the consumer to new programming that of which has potential to become his or her favorite show. Personalized content creates a more positive and interactive viewing experience for the consumer. The desire to binge watch has become a very popular viewing behavior and pastime among Americans. A consumer will binge watch by catching up on multiple episodes or seasons of a TV series in one sitting, typically through use of digital streaming. About 27% of American consumers binge weekly, and about 49% of them binge at least monthly. This behavior, another driving factor behind cord cutting, is particularly common among millennials ( State of the Broadcast Industry, 2016). Avid interest in live quality sports content is often viewed as ultimate deterrent for potential cord cutters, as they would prefer to watch from a traditional television. However, for
12 CORD CUTTING: A DIGITAL REVOLUTION 12 perhaps more casual sports fans, OTT platforms have begun to offer a live sports experience. According to Time Magazine, TNT Overtime has an NBA TNT Overtime app, which allows consumers to stream select playoff games (Tuttle, 2016). The basic Sling TV package also includes ESPN, ESPN 2, TBS, and TNT. Their new beta service package also offers Fox Sports channels, which may air NHL, NBA, MLB, and NFL games. Playstation Vue streams two ESPN and Fox Sports channels, in addition to TBS and TNT. Yahoo has streamed one MLB game daily during the 2016 season. Even Netflix is open to stream live sports, only on the condition that they can own and create the content themselves (Tuttle, 2016). According to Forbes, Disney bought stake in the MLB S streaming company BAMTech in hopes to collaborate with ESPN and launch a multi-sport subscription streaming service of its own (Brown, 2016). SNL Kagan would consider this a giant leap in the history of sports programming ( Broadband Cable Financial, 2016). Evolution of Marketplace Factors A survey from Salesforce found that 56% of U.S. Internet users cut the cord because pay TV services are too expensive ( Why are Internet Users Cutting the Cord, 2016). Additionally, 32% users cut the cord due to pay TV s technical issues, and 23% cut the cord due to pay TV s poor customer service (see Figure 6). The average pay TV subscriber currently pays over $100 according to Leichtman Research s annual study (Lovely, 2016; see Figure 7). Over the past five years, these prices have risen by 40%. As previously discussed, millennials make up a majority of cord cutters. Their low incomes make them less likely to subscribe to an overpriced pay TV bill. Additionally, millennials tend to spend more money on devices like smart phones, tablets, and laptops, leaving them less disposable income to spend on video content. These consumers
13 CORD CUTTING: A DIGITAL REVOLUTION 13 are more inclined to spend the least amount of money on a platform that offers an abundance of content ( State of the Broadcast Industry, 2016). According to a study from cg42, a New York-based research and analysis firm, a cord haver spends about $187 a month before cutting the cord; this fee includes streaming services, broadband Internet, TV, and phone (Ramachandran, 2016). In contrast, cord-cutter spends only $83 on streaming an Internet, and a cord-never spends about $71. Steve Beck, managing partner at cg42, said that, The consumer is discovering they don t need the mean, evil cable company to get the content that they want, and they can get it for a better deal (Ramachandran, 2016). The Verge, a news and media network operated by Vox Media, offers an online guide that helps consumers determine whether they can cut the cord and still receive the content they want, and even determines how much it would cost for them to do so. Amazon Video is about $8.25 a month, CBS All Access is $6 a month, HBO Now is $14.99 a month, Hulu Plus is $7.99 a month, Netflix is $8.99 a month, Playstation Vue is $49.99 a month, Sling TV is $20 a month, and Showtime is $10.99 a month ( The Cord Cutter, 2016). All of these options that carry an abundance of programming are considerably less money than a traditional monthly pay TV subscription. There has been a rapid growth of broadband penetration rates to keep up with the emerging over-the-top streaming market. SNL Kagan claims U.S. cable broadband subs will increase by over 8 million in the next 10 years, reaching 71 million by 2026 (Spangler, 2016). If this prediction holds true, the cable company s revenue will increase from $35.5 billion to $47.3 billion. Variety reports that broadband is far more profitable for TV, so even if the amount of cord cutters increase, cable companies may not be affected if they are also charging for high
14 CORD CUTTING: A DIGITAL REVOLUTION 14 speed internet (Spangler, 2016). This speculation will lead into next portion of this paper, which will further consider the market impact and implications of cord cutting. Discussion As discussed throughout this paper, the trend in cord cutting is gaining traction, and pay TV subscribers are dwindling. The final portion of this paper will examine pay TV s subscriber churn, how pay TV operators have attempted to adapt to the marketplace, and finally, explore potential predictions for the future. SNL Kagan s Multichannel Market Industry Presentation reported the combined cable, DBS, and telco video subscriptions declined 812,000 in Q2 2016, surpassing the record drop from Q (Kane, 2016). Most recently, on November 11, 2016, Variety reported that the pay TV industry lost 486,000 subscribers in Q (Schwindt, 2016b). BTIG Research analyst Rich Greenfield stated that within the first nine months of 2016, the eight biggest providers lost 926,000 subscribers total. These findings indicated cord cutting s impact on the industry. The article reports, the second and third quarters are typically down times for the industry The problem is that these second and third quarter losses have been larger than usual over the last two years, and that the corresponding boom quarters the first and fourth haven t made up for those losses like they did through as recently as 2012 (Schwindt, 2016b). Some analysts deny the impending demise of pay TV, in part because cable, DBS, and telephone companies have attempted to keep up with the rapidly evolving video consumption landscape (Aggarwal et al., 2016). These pay TV companies have begun to shift customers to lower priced skinny bundles to offer a more flexible, economical option to prevent losing them completely. These consumers, or as noted earlier in the paper, cord shavers, have adopted skinny bundles faster than the networks have anticipated. (Aggarwal et al., 2016) For example,
15 CORD CUTTING: A DIGITAL REVOLUTION 15 Comcast s XFINITY, Dish s Flex Pack, and Verizon s Custom TV packages all offer skinny bundle options. The implementation of skinny bundles has created some friction between pay TV operators and cable networks because these bundles typically exclude the most expensive networks. Such high priced networks like ESPN ultimately experience a contraction in subscriber base (Robson, 2016). Grappling with how to stay relevant, pay TV providers have even begun to compete in the streaming video market ( Broadband Cable Financial, 2016). Comcast launched a TV Everywhere initiative in 2009 with the intention of growing the number of devices where consumers can receive content. Pay TV providers began providing OTT services, considered virtual MVPDs, which offer live, linear channels that serve the digital, millennial market segment. For example, Dish s Sling TV is a streaming-based skinny package that was discussed earlier in the paper. Comcast introduced its XFinity TV app, Charter introduced its Spectrum TV app, and Cablevision introduced its Optimum app. AT&T s DirecTV Now will launch by the end of Virtual MVPDs offer a real competition to established OTT services. According SNL Kagan, UBS analyst Doug Mitchelson recently predicted that virtual MVPDs like Sling and DirecTV will attract 15 million subscribers by 2020, equating to 15% of the multichannel subscription market. By 2025, he believes these services could surpass 25 million subscribers (James, 2016). It is important to note that only Pay TV providers with robust broadband capability are in the best position to compete in the evolving digital market. The larger pay TV corporations like Comcast, Time Warner Cable, Dish, DirecTV, Verizon Fios, AT&T U-Verse, and more sell the broadband services that bring in cash flow from cord cutters and streamers. The smaller pay TV distributors without access to broadband are highly susceptible to cord cutting and more likely to
16 CORD CUTTING: A DIGITAL REVOLUTION 16 experience margin erosion at a faster rate. Unless these endangered companies align with broadband players, they will struggle to survive (Aggarwal et al., 2016). This research concludes that the effects of cord cutting on the future of pay TV will vary for cable, DBS, and telephone companies, as they are not experiencing subscriber churn and revenue losses at the same rates. SNL Kagan published projections for multichannel subscribers and revenues from 2015 through 2020 (Cheen, 2016). Contributing to about 14.3% of total pay TV revenue in 2015, telco providers are suffering the most subscriber and revenue declines. U- verse is expected to be phased out by the near term, and Verizon is not quite on track with expanding its FiOS fiber build. By 2020, telcos contribution is projected to decline to 10.2% of total pay TV revenue (Cheen, 2016). Cable companies are suffering the least from subscriber and revenue declines. Specifically, Comcast and Charter communications have even received a boost from broadband success. Cable companies contributed to 50% of total pay TV revenue in 2015, but by 2020, it may slip to 48.4%. According to Fortune, Comcast does not feel threatened by the effects of cord cutting (Ingram, 2016). SNL Kagan blogger, Bishop Cheen, suggests DBS is the big winner (Cheen, 2016). DirecTV will gain from AT&T U-verse s loss, and Dish will yield high growth from its Sling TV initiative. DBS, which estimated 36.6% of industry revenue in 2015, is projected to increase both its subscribers and total annual revenue by 2020, eventually contributing for 41.5% of total pay TV revenue. Clearly, cable and DBS operators certainly have a major advantage over telcos (Cheen, 2016). Overall, results found that by 2020, total pay TV subscribers are projected to decline by 1.1% compound annual growth rate (CAGR), and average revenue per unit may increase about
17 CORD CUTTING: A DIGITAL REVOLUTION % CAGR (Cheen, 2016; see Figure 8). These numbers suggest that, though a slow and steady decline does exist, a large part of the pay TV s industry subscriber base is, and will remain, in tact. Analyst Brian Wieser of Pivotal Research Group further reinforced this conclusion. His said that, any expectations around the death of TV because of SVOD services are likely overstated (Lafayette, 2017). The major pay TV contributors will continue to reinvent themselves to keep up with industry-wide change a revolution inspired by Netflix in Lachlan Murdoch, executive chairman of Fox, stated that, This is a time of transformative change in our industry. It s the kind of change that demands equal measures of clear thinking and of calculated risk-taking (Lafayette, 2015).
18 CORD CUTTING: A DIGITAL REVOLUTION 18 References Aggarwal, N., Arthofer, F., Lind, F., Rose, J., Rosenzweig, J., & Stephan, J. (2016, March 21). The digital revolution is disrupting the TV industry. BCG Perspectives. Retrieved from Broadband cable financial (2016, October 20). SNL Kagan. Retrieved from Brown, M. (2016, August 9). Disney buys $1B stake in MLB s BAMTech, to launch ESPN streaming service. Forbes Magazine. Retrieved from Cheen, B. (2016, October 20). Cord cutting could be far less negative than some pay TV bears think. SNL Kagan. Retrieved from Cross device video analysis (2015). Experian Marketing Services. Retrieved from pdf Cutting the cable (2015). Raymond James. Retrieved from graphic.pdf Definition of cord cutting. (n.d.). Retrieved from Effler, G. (2016, August 25). Streaming video customer satisfaction highest when paired with pay TV subscription. J.D. Power. Retrieved from
19 CORD CUTTING: A DIGITAL REVOLUTION 19 Horrigan, J., & Duggan, M. (2015, December 21). One in seven Americans are television cord cutters. Pew Internet. Retrieved from Hulu AdSwap (2016). Hulu. Retrieved from Ingram, M. (2016, April 27). Comcast: cord cutting? What cord cutting? Fortune Magazine. Retrieved from James, S.B. (2010, December 6). Time Warner Cable CEO: Americans love TV too much to cut cord. SNL Kagan. Retrieved from James, S.B. (2016, September 26). Grabbing the virtual MVPD bulls by the horns. SNL Kagan. Retrieved from Kaine, M. (2016, October 21). Multichannel market industry presentation, Q SNL Kagan. Retrieved from Lafayette, J. (2015, November 5). Disrupting TV business model in Fox s blood. Broadcasting & Cable. Retrieved from Lafayette, J. (2016, August 25). Survey: cord cutters least satisfied streamers. Broadcasting & Cable. Retrieved from Lafayette, J. (2017, April 12). Analyst: SVOD hurting pay TV less than expected. Broadcasting & Cable. Retrieved from Lenoir, T. (2016, September 23). Annual multichannel cost outpaces inflation, shrinks video affordability in last 25 years. SNL Kagan. Retrieved from Lovely, S. (2016, September 23). The average pay TV bill is now over $100. Cordcutting. Retrieved from
20 CORD CUTTING: A DIGITAL REVOLUTION 20 Perlberg, S. (2014, October 10). CMO today: beware the cord shavers. The Wall Street Journal. Retrieved from Ramachandran, S. (2016, September 28). Cord cutting could cost pay TV industry $1 billion in a year, study says. The Wall Street Journal. Retrieved from Robson, S. (2016, August 30). Nielsen universe estimates how cord cutting/shaving is on the rise. SNL Kagan. Retrieved from Schwindt, O. (2016a, July 15). Cord cutting accelerates: study finds 25% of U.S. homes don t have pay TV Service. Variety. Retrieved from Schwindt, O. (2016b, November 11). 486,000 pay TV subscribers cut the cord in Q3. Variety. Retrieved from Spangler, T. (2016, August 12). Cable TV revenue to drop by $2.7 billion in next 10 years as broadband booms. Variety. Retrieved from State of the broadcast industry (2016). Ooyala. Retrieved from EQK-225/images/Ooyala-State-Of-The-Broadcast-Industry-2016.pdf Steel, E., & Marsh, B. (2015, October 3). Millennials and cutting the cord. The New York Times. Retrieved from Streaming services have big impact on millennials decisions to forego pay TV (2016, September 26). Marketing Charts. Retrieved from The cord cutter (2016). The Verge. Retrieved from The state of traditional TV: Q update. (2016, October 5). Marketing Charts. Retrieved from /
21 CORD CUTTING: A DIGITAL REVOLUTION 21 Tuttle, B. (2016, May 23). Five live streaming sports services every cord cutter must know about. Time Magazine. Retrieved from Why are Internet users cutting the cord? (2016, April 29). Emarketer. Retrieved from Young, C., Olgeirson, I., & Lenoir, T. (2017, March 9). Q4 16 video subscriber declines bite into US multichannel. SNL Kagan. Retrieved from Zambelli, A. (2014, July 7). Cord-cutting: beginning of the end for linear television. The Guardian. Retrieved from
22 CORD CUTTING: A DIGITAL REVOLUTION 22 Figure 1. Appendix Source: Young et. Al (2017).
23 CORD CUTTING: A DIGITAL REVOLUTION 23 Figure 2. Source: The State of Traditional TV (2016).
24 CORD CUTTING: A DIGITAL REVOLUTION 24 Figure 3. Source: Streaming Services Have Big Impact (2016).
25 CORD CUTTING: A DIGITAL REVOLUTION 25 Figure 4. Source: Cross Device Video Analysis (2015).
26 CORD CUTTING: A DIGITAL REVOLUTION 26 Figure 5. Source: Cross Device Video Analysis (2015).
27 CORD CUTTING: A DIGITAL REVOLUTION 27 Figure 6. Source: Why are Internet Users Cutting the Cord (2016).
28 CORD CUTTING: A DIGITAL REVOLUTION 28 Figure 7. Source: Lovely (2016).
29 CORD CUTTING: A DIGITAL REVOLUTION 29 Figure 8. Source: Cheen (2016).
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CUT THE CORD THINGS TO CONSIDER BEFORE FIRING YOUR CABLE COMPANY Hewie Poplock email@example.com January, 2019 SURVEY At then end of this presentation please fill out the survey on line. You can wait until
Cutting the Cord Watch Video Programs on Your Terms Presenter Eric Hayes Network & Systems Administrator Orion Township Public Library firstname.lastname@example.org 248.287.8019 I m Here to Help I m repeating
Quit Cable & Satellite, Keep TV and $ave Marcia Siehr and Rob Nunez $103 month Can you beat the national average? Multiple Ways to Save- We will cover them all! HDTV Antennas Internet/Streaming TV services
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Local TV remains leading source of news even as online grows Television remains the most popular choice for national and international news, despite the growth of online news sources. There has been continued
The Communications Market: Digital Progress Report Digital TV, 2009 This is Ofcom s twenty-third Digital Progress Report covering developments in multichannel television. The data are the latest available
Pulling the plug: Three-in-ten Canadians are forgoing home TV service in favour of online streaming Despite availability of skinny cable packages, most current subscribers say TV service is too expensive
PAY TV IS NOT DEAD! MYTH BUSTING 101: IT S (NOT) INFERIOR TO OTT COST AND VALUE EXPERIENCE CHARLES CHEEVERS - ARRIS MICHAEL MCCLUSKLEY - ESPIAL TABLE OF CONTENTS INTRODUCTION... 4 CURRENT PAY TV SOLUTIONS...
1 A quarterly review of population trends and changes in how people can watch television 217 Analysis by 2 CONTENTS 3 THE PRIMARY ROLE OF SECONDARY TV SETS Secondary TV sets are becoming increasingly important
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Us Pay TV networks and the consolidation of the European TV market 7th November 2018 DATAXIS Global Offices based in Europe, Americas and Africa Research Leader in Market Intelligence of the Pay TV and
Netflix: Amazing Growth But At A High Price Mar. 17, 2018 5:27 AM ET8 comments by: Jonathan Cooper Summary Amazing user growth, projected to accelerate into Q1'18. Contribution profit per subscriber continues
Architecting the new TV Daniel Knapp, Director Advertising Research Media trends have always sparked speculations and visions sometimes remarkably accurate How we will live in the year 2000 (German artist
Rating Change Distribution Percent of TV Shows 27-28 vs. -, Broadcast Upfronts 1 TV Today Figure 1 27-28 18% 18% 29% 24% 11% Lose Small, Win Smaller 3 out of 4 weekly broadcast shows lost up to 1% of their
WWW.IBISWORLD.COM January August 2017 2014 1 3 Follow US Markets on head Reshaped on Master By Tech page Giants A August 2017 Three Traditional US Markets Reshaped by Tech Giants By Devin McGinley These
RATE INCREASE FAQs 1 Why are rates going up? 2 Can you tell me what one TV station/network costs? 3 Your services are too expensive...i am going to switch to a different provider. 4 I refuse to pay more
Mobile Viewing Trends Emerging Entertainment Technology New Entertainment Technology (NET) Tracker (October, November, December) Copyright Screen Engine/ASI 2017. Any duplication, reproduction or usage
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RESEARCH & PERSPECTIVES Telemedia's New Reality Show: Cord-Cutting, Shaving and Cord-Nevers By Janet Sung, CFA and Ryan Yackel, Credit Research Senior Analysts KEY TAKEAWAYS We believe cable will continue
Justina Vasquez December 2, 2015 Comcast Corp. Cable Services Division: 3-Year Strategic Plan Executive Summary Comcast Corporation provides cable video, telephone and Internet services to 22.26 million
BSAC Business Briefing TV Consumption Trends in the Multi-Screen Era October 2012 Traditional TV Viewing Is Holding Up Well Despite all the hype about social networking, over-the-top video services, smartphones,
GfK Briefing to BASE SVOD Content Consumption Tracking March 17th 2016 GfK 2015 1 Typically, 72% of the population watches something live or as scheduled on the average day 72% Source: BARB Daily reach,
Why TV in 018? WHY KOB ADVERTISING Advertising in Today s Complex Media World Media is evolving. Media consumption habits are changing. Advertisers must engage consumers where they spend the most time,
The Demand for Video Services: When Fiber Becomes an Alternative Paul Rappoport, Temple University James Alleman, University of Colorado Lester Taylor, University of Arizona I. Introduction Until recently,
Connected Life Market Watch: Transitions in U.K. Consumer Video Entertainment Cisco Internet Business Solutions Group October 2010 Internet Business Solutions Group 1 Connected Life Market Watch Program:
1 THE EVOLUTION OF TV 7 dynamics transforming TV The convergence of TV and internet video Television: An industry of innovation and change People prefer TV on their terms The internet TV opportunity: 7
The Communications Market: Digital Progress Report Digital TV, Q2 2007 This is the fifteenth Ofcom Digital Progress Report covering developments in digital television take-up. The data are the latest available
Pay TV is Not Dead! Myth Busting 101: It s (NOT) Inferior to OTT Cost and Value Experience A Technical Paper prepared for SCTE/ISBE by Charles Cheevers CTO Customer Premises Solutions ARRIS 3871 Lakefield
AUSTRALIAN MULTI-SCREEN REPORT QUARTER 02 Australian viewing trends across multiple screens Since its introduction in Q4 2011, The Australian Multi- Screen Report has tracked the impact of digital technologies,
CONQUERING CONTENT N O V E M B E R 2 0 1 5! EXCERPT OF FINDINGS 1 The proliferation of TV shows: a boon for TV viewers, a challenge for the industry More new shows: # of scripted original series (by year):
WBOB 2014 Mid-Year Rate Increase Hello. Thanks for tuning in. I want to tell you about a change in TV prices that will take effect on July 1. On the surface, it s pretty straightforward. Basic Cable will
Introduction slide 1 Digital Television 1. Digital systems of delivery are shaping how television is both produced and consumed New companies online The new media companies are a combination of both continuation
GAME ON! THE LIVE SPORTS VIEWING HABITS OF CONNECTED CONSUMERS GENERAL SESSION, DECEMBER 12, 2017 Michael Greeson, President and Director of Research 1 METHODOLOGY In 2015, Dolby and TDG began a multi-year
The Speed of Life* 2009 Consumer Intelligence Series TV viewership and on-demand programming Online community dialogue conducted in March 2009 Series overview Through PricewaterhouseCoopers ongoing consumer
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Analyst: Anthony Petretti Sector: Consumer Discretionary Valuation: Netflix Inc. Ticker: (NasdaqGS:NFLX) Date: 12/18/2017 Current Price: $190.42 Recommendation: Short Company Description Investment Thesis
AUSTRALIAN MULTI-SCREEN REPORT QUARTER 02 Australian viewing trends across multiple screens The edition of the Australian Multi-Screen Report provides the latest estimates of technologies present in Australian
Cool Off With Premium Video Content: How Viewers are Beating The Heat During Summer Months Contents Summer Video Viewing 4 Reach 5-7 Days tuned-in 8 Summer Streaming 9-11 Summer Binging 12 Time spent by
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TV Subscriptions and Licence Fees The revision of the Federal Law on Radio and Television (RTVA) will direct more license fees to local radio and TV stations. Swiss TV providers are expanding their Replay-Functions.
Cable TV Quick Start Guide Enjoy your Midco cable TV experience to the fullest with these helpful tips. 1 Contents Equipment & Features.......................................................... 4 Remote
These questions are intended to obtain information about community needs and interests related to cable TV. The information gathered will help to determine if existing local cable TV services and resources
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Undeniable and Unstoppable The epic migration of television viewers from linear channels to on-demand streaming platforms by John Hendricks August 2018 It is not difficult to speculate on the future evolution
WAYS YOU CAN BENEFIT FROM LOTAME TV VIEWERSHIP DATA 1 TV AD EXPOSURE AUDIENCES Reach viewers who saw your brand message on TV by following up with a personalized digital ad. With Lotame, you can be sure
RATE INCREASE FAQs 1 Why are rates going up? 2 Can you tell me what one TV station/network costs? 3 4 I refuse to pay more money for lousy service. 5 I am in a promotional package, are my rates changing
Netflix Group 4 Why split up Netflix? DVD by mail is slowly dying, but Netflix will do everything it can to keep it alive Netflix has diverged into two different business lines, with two very different
TV Buying Basics Welcome from Mickey It s no secret that video is a go-to strategy for consumer marketers. It s obvious why. Sight, sound, and motion create a powerful brand experience, while digital targeting
Australian video viewing report QUARTER 4 2 Introduction W elcome to the Australian Video Viewing Report spanning the year through. This issue builds on the continuing story of how Australians are embracing
Tired of Paying for Cable TV? Streaming Video May Be For You! Streaming TV may be for you if You want to reduce monthly cost for TV Your shows/movies/sports are available via Internet You prefer to watch
Competition Works. Consumers Win! Competition, Choice and Value Shape Today s Communications Marketplace National Cable & Telecommunications Association 1 Today s Communications Marketplace Intensely competitive,
A Boutique Streaming Platform Bringing Hundreds of Channels to consumers on over 400 Mobile Devices StreamNet, Inc 1 Business Plan StreamNet, Inc is a music and entertainment technology company whose primary
November 2014 Netflix: Who will win and who will lose? With a market capitalisation on a par with BT and Sky and UK penetration of 15%-20%, Netflix is becoming a major media player. And this is just the
CUT THE CORD THINGS TO CONSIDER BEFORE FIRING YOUR CABLE COMPANY Hewie Poplock email@example.com November 2018 SURVEY At then end of this presentation please fill out the survey on line. You can wait until
THE FAIR MARKET VALUE OF LOCAL CABLE RETRANSMISSION RIGHTS FOR SELECTED ABC OWNED STATIONS BY MICHAEL G. BAUMANN AND KENT W. MIKKELSEN JULY 15, 2004 E CONOMISTS I NCORPORATED W ASHINGTON DC EXECUTIVE SUMMARY
STTE OF THE MEDI THE CROSSPLTFORM REPORT QURTER, 0 UNDERSTNDING THE VIDEO CONSUMER The average merican today has more ways to watch video whenever, however and wherever they choose. While certain segments
A Majority of Americans Use Apps to Watch Streaming Content on Their Televisions Men, Younger Adults, Higher Income Earners, and Those with a College Degree Are Among Those Most Likely to Use a Variety
Cable TV Quick Start Guide Enjoy your Midco cable TV experience to the fullest with these helpful tips. 1 Contents Equipment & Features.......................................................... 4 New Equipment
Future of TV This report assesses the future of TV in all its forms, encompassing content, technology, consumer appliances and devices, mobile devices, evolving media and broadcast business models, the
FORT COLLINS CABLE TELEVISION SERVICES RESIDENTIAL SURVEY MARKED INSTRUMENT (N=701) 1. Does your household currently subscribe to cable television services? (N=689) 53% Yes, from Comcast (Go to Q.3a) 47%
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AMAC Foundation 2017 Seminar Series Today s Workshop: Life After Cable Entertainment Alternatives OR Cutting the Cord AMAC Foundation 2017 Seminar Series Association of Mature American Citizens, Inc. Better
Cable Television Advertising A Guide for the Radio Marketer Overview Cable Television has seen tremendous advertising revenue growth in recent years. This growth is believed to have impacted radio s revenue
ThinkTV FACT PACK NEW ZEALAND JAN TO DEC 2017 TV Has Changed NEW ZEALAND Today s TV is a sensory experience enjoyed by over 3 million viewers every week. Powered by new technologies to make TV available
TV Subscriptions and Licence Fees By mid-2015, UPC Cablecom had switched off analogue TV service completely in all of Switzerland. UPC Cablecom and Swisscom resist OTT competition by offering unlimited
Cable TV Quick Start Guide Enjoy your Midco cable TV experience to the fullest with these helpful tips. 1 Contents Equipment & Features.......................................................... 4 New Equipment