Cord cutting Yeas and Nays
Interesting news mail from The Morning BRIDGE
“Cord-Cutting Yeas, Nays & Maybes
On that whole poverty/cord-cutting question, here’s the latest from Bernstein Research’s Craig Moffett: “The current media model is a victim of its own success. It has proven so profitable, and so resilient, that there is virtually no willingness to change. And so… it won’t. At least, it won’t of its own volition. It won’t bend, and so it will (eventually) break, even if it lasts far longer in its current form than many naysayers would have it precisely because of its inflexibility.
Not everyone is a cord cutting believer, of course. Time Warner chief Jeff Bewkes, for example, told theFinancial Times that TV viewing rose during the recession because “People love their TV. They love it on their TV screen and they love it on their new screens.” So the golden age will continue, he says.
No surprise there. (Hey, that’s his business.) But some analysts are weighing in as well. BTIG’s Richard Greenfield, for example, conducted a poll of 1,300 US consumers of which 1,200 had pay TV subscriptions. Of those, 37% said they’d consider cutting the cord but “when … asked if they would actually drop, if it meant losing live sports events, missing out onlive reality TV results shows and missing some of their favorite programming entirely), only 96 people (less than 8%) would still consider dropping his multichannel TV provider.”
Still, Greenfield says, today’s low-wage, high-unemployment economy is a definite problem. As a result, he slightly lowered his subscriber growth estimates for Comcast, Mediacom and Time Warner Cable. But, he adds, with share prices down it’s a good time to buy cable stocks.•”
(highlight is mine.)
A question for you! Everyone knows that the internet is drawing eyeballs away from TV. Will there be a moment that broadcasters and advertisers will be forced to get their sports events, and all favorite programs online? They have to follow eyeballs, right? And if that happens, what is going to happen to cable?
For your understanding, in many parts of the world, cable owners don’t own their own channels or content. So if these content producers and broadcasters decide to go online, go OTT, because they are forced to do so because of competition (eyeballs), how is this going to influence cable subscribers?