Cable Operators Losing Video Subscribers

In the second quarter of 2012, the top nine cable companies lost 540,000 video consumers, a bit lower than the 600,000 video subscriber loss in the second quarter of 2011, according to Leichtman Research Group.

Looking at the 13 largest multichannel video providers in the U.S. -- cable, satellite, and telco operators -- the business lost 325,000 video consumers, 1,500 more than the total loss of video customers in the second quarter of 2011.

Leichtman says the top nine cable companies have 52.1 million subscribers, satellite TV companies have 34 million and telephone companies reporting 8.6 million.

The telephone companies had the best positive results during the period -- although slowing down from gains made years ago. They added 275,000 video subscribers, compared to 386,000 customers in the second quarter of 2011.

Satellite TV providers also took it on the chin, losing 62,000 subscribers. This compares to a loss of 109,000 in the second quarter of 2011. DirecTV had its first loss of subscribers -- 52,000 -- in the second quarter. 

TV Sourcing and Viewing Continues to Change

According to the latest Nielsen Cross-Platform Report, Americans spend more than 33 hours per week watching video across the screens, but how they're consuming content, traditional TV and otherwise, is changing.

Consumers are increasingly making Internet connectivity a priority; 75.3% pay for broadband Internet (up from 70.9% last year):

• 90.4% pay for cable, telephone company-provided TV or satellite
• Homes with both paid TV and broadband increased 5.5% since last year

Consumers are seeking out the subscription service that makes the most sense for them, says the report. The number of homes subscribing to wired cable has decreased 4.1% in the past year at the same time that telephone company-provided (telco) and satellite TV have seen increases of 21.1% and 2.1%, respectively.

Nearly a million more homes are subscribing to broadband while skipping a traditional paid TV subscription. There are 5.1 million broadcast-only/broadband homes, and though broadcast only/broadband homes comprise a smaller subscriber group; the number of these homes has increased by 22.8% since Q3 2010.

Whether they're cord-cutters or former broadcast-only homes that upgraded to Internet service, these homes represent a growing group of U.S. consumers. Interestingly, roughly the same percentage of consumers in broadcast-only/broadband homes watch traditional TV, stream or use the Internet as in all cross-platform homes; the difference between these groups falls to time spent on these activities. Even broadcast-only/broadband homes spend the majority of their video time watching traditional TV: 122.6 minutes, compared to 11.2 for streaming on average each day.

(Source: The Center for Media Research, 03/02/12)

Internet-Only TV Homes Surge 22.8%, Spend 9% of TV Time Online

Households continue to cut cable/satellite - turn to broadcast and streaming.
Characterizing it as a "development to watch," Nielsen issued a new report to clients last week showing that the number of U.S. households that bypass cable or satellite TV and subscribe only to broadband Internet access has grown dramatically in the past year, and not surprisingly, they spend dramatically more time watching TV over the Internet.

The Nielsen report said it is too soon to determine whether these households are so-called "cord-swappers" -– swapping the cable/satellite TV cord for the broadband Internet cord -– but they are growing faster than any other segment of the "cross-platform" television marketplace.

While the percentage of Internet-only TV homes is still relatively small -– less than 5% of all TV households -– they grew 22.8% over the past year, according to the report, which reflects data for the third quarter of 2011 vs. the third quarter of 2010.

Not surprisingly, these households are streaming more than twice as much TV online as the general population: an average of 11.2 minutes daily vs. 5.0 minutes for all TV households. While these households are relatively low users of TV -– at about half as much as the time spent watching TV by the general population –- they currently are watching more than 9% of all their TV minutes online. According to Nielsen's data, the average TV household currently is watching about 1.9% of their total TV minutes online.

"The increase in broadcast-only/broadband homes is the most significant of any category, though it is not necessarily an indication of downgrading services," reads the Nielsen report. "Rather, this could reflect broadcast-only homes upgrading to broadband as their needs change. Further underscoring the importance placed on broadband Internet, the number of homes subscribing to cable-plus and no broadband decreased 17.1 percent since last year."

(Source: Media Daily News, 02/09/12)