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Cable giants embrace innovation to battle cord cutting

CNBC.comBy Julia Boorstin | CNBC.com – Tue, Jun 18, 2013 7:09 PM EDT


The threat of cord cutting is finally a reality, says industry analyst Craig Moffett. He says the first quarter saw the largest-ever decline in cable subscribers, and projects that the percentage of Americans who pay for TV will drop from 88 percent this year to 82 percent in 2020.


Moffett says cable distributors "have very little ability to push back on the escalation in their costs. But they're hearing from their end users that prices are increasing too fast; they're between a rock and a hard place."


Addressing those concerns at the National Cable Show in Washington, D.C., the cable distributors  showcased all sorts of new technologies to give their subscribers greater value for that monthly cable bill, and keep them hooked.


Cox Communications President Pat Esser acknowledged the problem: "Cord cutting is real.... Consumer behavior is shifting and they want their entertainment where they want it and when they want it and on the devices they want it on."


To address the threat, Esser says, the company researched what improves customer interaction, finding that consumers prioritized a simpler user interface, a more powerful DVR, personalized recommendations, and access via other devices. It's rolling out more of these services this summer.


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Comcast CEO Brian Roberts unveiled a new user interface—called X2—saying its voice-controlled remotes and "intelligent" user interaction will be game changers for the industry.


"It all starts with our goal which is to take all of the intelligence out of the cable box and put it in the cloud. That allows us to innovate faster," Roberts said. "It's smarter, it's personalized, it's easy, it's fun and it's beautiful."


Twitter's COO Ali Rowghani spoke at the cable show to convince cable companies that Twitter can be a valuable tool to engage consumers with live TV and prevent cord cutting.


It all comes down to the correlation between tune-in behavior and Twitter activity, which Nielsen recently reported. After speaking on stage Rowghani met with a number of cable chiefs to drive more partnerships—like the one Twitter has with ESPN—in the future.


"We believe TV has always been social except now with the advent of social media, that social conversation can happen at a much bigger scale and can be measured and acted upon," Rowghani said. "That's what's really interesting and profound we think about Twitter."


Antenna TV Roars Back

June 24, 2013 | Mari Silbey


Roughly 22 million American households now rely solely on over-the-air (OTA) broadcasts to feed their TV viewing habit. That's the news from research firm GFK, which has recorded a statistically significant increase in OTA-only viewing over the last three years.


In 2010, GFK's survey of U.S. homes found just 14 percent of households relying on broadcast-only TV. In 2012, that number jumped to 19.3 percent and now it has risen well above the 20 million mark.


The growth in OTA viewing in the U.S. coincides with continuing declines in the number of cable TV subscribers. In the first quarter, for instance, nearly all major U.S. MSOs suffered drops in basic video customers. (See Comcast Suffers Q1 Video Subs Setback.)


However, GFK's research comes with a cautionary note for anyone who believes that non-cable homes are full of consumers seeking streaming video alternatives. Few of these cord cutters have an Internet-connected TV, and more than 60 percent said they rely on broadcast signals because of the high cost of pay-TV services, not because of Web video options available.


GFK cites the digital television transition as one possible factor in the growth of broadcast-only homes. In some markets, the transition boosted the number and quality of accessible TV channels.


The right antenna can also make a big difference, and at least one manufacturer is raking in cash from the trend toward more OTA viewing. Mohu, creator of the Leaf antenna, saw revenues skyrocket 700 percent in 2012 and expects a further 300 percent increase in 2013. (See DirecTV Might Sack Its NFL Exclusive.)


— Mari Silbey, Special to Light Reading Cable

Survey: Pay TV Cord-Cutting Population Rising

Jun 21, 2013, 9:38 AM EDT by Andrew Dodson


Nearly 6 million more people are relying on over-the-air broadcast television than a year ago, according to new research from GfK Media & Entertainment.


The percentage of TV households currently OTA (exclusive) reliant has grown from 14% in 2010 to 19.3% in the current survey — a 38% increase in about four years, according to the study that was released this week. The National Association of Broadcasters emailed the report to members of the media Friday.


“Over-the-air households continue to grow, making up an increasingly sizable portion of television viewers,” David Tice, SVP of GfK Media & Entertainment, said in a statement. “Our research reveals that over-the-air broadcasting remains an important distribution platform of TV programming; this year’s results confirm the statistically significant growth in the number of broadcast-only TV households in the U.S., which we identified in 2012.”


The survey found that demographics of broadcast-only households continue to skew toward younger adults, minorities and lower-income families. Other statistics include:


The survey found that demographics of broadcast-only households continue to skew toward younger adults, minorities and lower-income families. Other statistics include:










Where Did Nine Million Cable Subscribers Go?

January 5, 2012 at 4:24 am PT


New year, new chance to talk about cord-cutting/shaving/avoiding. Which is either a big deal that’s going to get bigger, or basically imaginary, depending on who you like to listen to.


If you’re in the big-deal camp, then you’ll like a new survey from Deloitte, which finds that a staggering one in five U.S. residents say they have either cut the cord or are thinking about doing it. The breakdown: Nine percent of survey respondents say they’ve recently cut the cord and are getting their shows from Netflix, Hulu, iTunes, etc. And another 11 percent say they might do it. (Click image to enlarge.)


To repeat: The Deloitte survey is asking people about cutting pay TV — Comcast, Verizon, Dish, etc. Not cutting back on certain channels like HBO (that would be cord-shaving) or simply never signing up in the first place (that would be the “cord-nevers” we’ve started to hear about).


How can that possibly square with the pay-TV industry’s reported results, which show that overall subscription levels remained basically flat last year? Even if you allow for a significant margin of error, things don’t add up: If the pay-TV business had lost a single percentage point of its customers in the last year, it would be a huge deal.


But Deloitte is reporting that approximately nine million people say they’ve recently stopped paying for TV. That’s the entire population of New York, plus another million or so, vanished. Can’t be.


I’ve asked Deloitte if they’ve got any insight on the gap, but haven’t heard back. But my hunch is that — for now, at least — cord-cutters are like vegans: They’re real, and they’re out there. They’re particularly notable in certain places like New York, the Bay Area and college towns. And they over-index at certain Web gathering places, like this one. But McDonald’s sales are still chugging along.

“Cord Cutters” turning to online video and OTA antennas


About six percent of U.S. households have cut the cord, and close to sixty million Americans now get their TV for free off antennas.


At first cable executives denied the trend, blaming it only on an economic hiccup. But that excuse no longer works as millions of Americans are cutting the cord and moving to the Internet and free over-the-air (OTA) reception.


So far about six percent of U.S. households have cut the cord, and close to sixty million Americans now get their TV for free off antennas. Millions more have completely dropped cable and satellite TV in favor of streaming-only fare over the Internet.


A new study finds that minorities represent 41 percent of all households that rely on OTA antennas.


A new study released last week by GfK, a market research firm, found that 19.3 percent of all U.S. TV households get their TV from free OTA broadcasts. This means that 22.4 million households representing 59.7 million Americans get their TV for free, the market research firm estimated. One in five young households never bothered to get a TV subscription to begin with.


The number of households relying on OTA reception only is also growing, GigaOm reported. In 2010, it reported that only 14 percent of all households were getting their TV this way. Growth is especially strong amongst younger households, lower-income families and minorities, and it’s gathering momentum quickly, GigaOM said.


It’s not hard to see why people are looking for ways to ditch their cable bill, USA Today reported. A recent study by the NPD Group determined that the average monthly cost of pay TV in the U.S. hit $86 in 2011 and is projected to rise to $123 by 2015. That’s on top of broadband Internet access, which can chew up anywhere from $20 to $205 per month, when it isn’t bundled with a cable subscription.


In contrast, Netflix and Hulu Plus cost just $7.99 monthly, the newspaper reported. Amazon’s video service is bundled into its Prime membership, which runs $79 per year. Add the three together and you’re looking at about $22.50 for monthly access to a massive combined catalog of movies and TV shows. And these are just the most prominent out of dozens of competing streaming services.


Nielsen, the television measurement company, has begun to pay special attention to what it calls “Zero-TV” households. Though it still refers to them as a “small group,” Nielsen said that these cord-cutters now account for more than five million homes, up from just over two million in 2007.


The GfK study found that minorities represent 41 percent of all antenna households. The majority of Latino households that speak primarily Spanish now use an antenna to get their TV programming, with only 49 percent of those households subscribing to a pay-TV service, GfK said. Also, 28 percent of all households with a head of household under the age of 35 use an antenna instead of a pay-TV subscription.