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Cord-Cutting Explodes: 22 Million U.S. Adults Will Have Canceled Cable, Satellite TV by End of 2017

Todd Spangler

Research firm eMarketer cuts TV ad-spending forecast on accelerating pay-TV declines

Winter is here for cable and satellite TV operators.

American consumers are cancelling traditional pay-TV service at a much faster rate than previously expected, according to research firm eMarketer.

In 2017, a total of 22.2 million U.S. adults will have cut the cord on cable, satellite or telco TV service to date — up 33% from 16.7 million in 2016 — the researcher now predicts. That’s significantly higher than eMarketer’s prior estimate of 15.4 million cord-cutters as of the end of this year. Meanwhile, the number of “cord-nevers” (consumers who have never subscribed to pay TV) will rise 5.8% this year, to 34.4 million.

“Younger audiences continue to switch to either exclusively watching [over-the-top] video or watching them in combination with free-TV options,” said Chris Bendtsen, senior forecasting analyst at eMarketer. “Last year, even the Olympics and [the U.S.] presidential election could not prevent younger audiences from abandoning pay TV.”

Overall, 196.3 million U.S. adults will have traditional pay TV (cable, satellite or telco) this year, down 2.4% compared with 2016, eMarketer predicts. By 2021, that will drop to 181.7 million, a decline of nearly 10% from 2016. The number of pay-TV viewers 55 and older will continue to rise over the next four years, while for every other age cohort the subscriber tallies will decline.

By 2021, the number of cord-cutters will nearly equal the number of people who have never had pay TV — a total of 81 million U.S. adults. That means around 30% of American adults won’t have traditional pay TV at that point, per eMarketer’s revised forecast.

There’s a caveat on these numbers: eMarketer’s estimates for pay-TV viewers do not include “virtual” internet TV services, such as Dish Network’s Sling TV, AT&T’s DirecTV Now, Hulu’s live TV service, or YouTube TV. But industry analysts say over-the-top TV subscription services so far have not offset declines in traditional pay television. Moreover, the cheaper OTT packages typically include fewer channels, so the growth of “skinny” TV bundles implies net household losses for many cable networks.

Seeing the writing on this wall, several TV programmers have launched or are prepping direct-to-consumer streaming services themselves. CBS in 2014 launched All Access, while Disney has set early 2018 for the debut of a no-cable-needed ESPN OTT package (although that will exclude NFL and NBA games). In addition, five media companies — A+E Networks, Viacom, Discovery, Scripps Networks Interactive and AMC Networks — reportedly have joined forces to create a non-sports streaming bundle of cable programming to be priced at under $20 per month.

For the TV biz, there’s another worrisome trend: People are watching less traditional television. For the first time, in 2017 average TV viewing in the U.S. is expected to drop below 4 hours per day, eMarketer predicts.

Average time spent watching TV (excluding digital) among American adults will drop 3.1%, to 3 hours 58 minutes this year. Digital-video consumption, meanwhile, continues to climb. U.S. adults will consume 1 hour 17 minutes of digital video per day on average in 2017 (excluding time spent viewing video on social networks), up 9.3% year over year, according to eMarketer.

With the U.S. pay-TV base eroding faster than anticipated and average TV viewing time dropping, eMarketer cut its TV ad-spending forecast for 2017 by a little over $1 billion.

This year, TV advertising will increase just 0.5%, to $71.65 billion (versus the firm’s previous $72.72 billion forecast). As a result, the TV sector’s share of total U.S. media ad spending will drop to 34.9% (vs. 36.6% in 2016) and is expected to fall below 30% by 2021.

Correction: A previous version of this article incorrectly stated that 22.2 million U.S. adults were expected to cancel pay-TV service in 2017; in fact, eMarketer’s estimate represents the cumulative number of cord-cutters projected by the end of the year.

Source – https://variety-com.cdn.ampproject.org/c/variety.com/2017/biz/news/cord-cutting-2017-estimates-cancel-cable-satellite-tv-1202556594/amp/


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Best DVRs for cord cutters you can buy

By Kevin Downey, Komando.com

Have you cut the cord yet? Are you familiar with that expression?

You’ve probably been hearing that term a lot lately, including on Komando.com. It refers to people cutting the cord on cable TV or satellite TV.

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GfK Research Study Reveals Time Spent with Traditional TV is 16% Greater than Time Spent with all other Media Platforms Combined

Comprehensive Results of the Study will be Presented on September 29 at Forward 2016 – Broadcast Television’s Annual Leadership Conference

September 07, 2016 10:04 AM Eastern Daylight Time

NEW YORK–(BUSINESS WIRE)–GfK, a trusted leader in market research, in collaboration with TVB, the not-for-profit trade association for local broadcast television, today announced preliminary results from the “Media Comparisons 2016” research study with findings that American consumers spend more time with television than all other ad-supported media platforms combined. The study also revealed that consumers overwhelmingly trust local broadcast TV news over any other source.

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US TV: erosion, not implosion

TMT Predictions 2016

Deloitte Global predicts that the US traditional television market, the world’s largest at about $170 billion in 2016, will see erosion on at least five fronts: the number of pay-TV subscribers; pay-TV penetration as a percent of total population; average pay-TV monthly bill; consumers switching to antennas for watching TV; and live and time-shifted viewing by the overall population, and especially by trailing millennials (18-24 years old).

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Survey says: streaming in, cable out


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HOT OFF THE PRESS! More data on over-the-air reception and trends.

Fresno numbers are much higher than the national average.  Almost four in ten homes with an 18- to 34-year-old resident rely on broadcast-only or Internet-only alternatives.

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Nielsen: Diaries Finally On The Way Out

By Adam Buckman
TVNewsCheck, September 18, 2014 3:55 PM EDT

Nielsen’s diary-based system for measuring local TV viewership — a system that has been in place in one way or another for at least 60 years — is beginning to be dismantled and will “eventually” be retired, TVNewsCheck has learned.

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Of Cable, Congress and Cockroaches

Mohu study puts pay TV near bottom of food chain

Author: Mike Farrell

Digital antenna maker Mohu released a consumer satisfaction study Wednesday that seems to fly in the face of industry efforts to improve customer service, with respondents putting their cable company just a step ahead of Congress and disease-carrying vermin.

According to the survey, 50% of respondents said they held an unfavorable view toward their cable company, compared to 72% that said they had an unfavorable opinion of Congress and 92% that said they did not enjoy the company of cockroaches. No word on where rats, ringworm, or the Senate ranked in the study.

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As Viewers Move Away From Cable to Watch Live Sports, Watch the Dominoes Fall

By Sean Pendergast
Tuesday, April 26, 2016 at 6 a.m.

In team sports, to fans and spectators, ultimate victory is a simple concept. One winner takes home one trophy each season in each sport. Peyton Manning’s hoisting of the Lombardi Trophy, confetti raining down onto the Villanova basketball team after their title-winning buzzer beater — to fans, those are the images of success.

Behind the scenes, though, to the power brokers and franchise owners who move the chess pieces in our sports universe, true “victory” is far more inclusive. To them, success is measured in dollars, and while only one team can lift the trophy at the end of each season, for several years now, the money has piled up sky-high for every single team owner and major college president, regardless of how good or bad their teams have been.

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Local Broadcast Television Scores Big Ratings Win With NFL Playoffs Viewers Overwhelmingly Prefer NFL on Local Stations Versus Cable

Download PowerPoint | TVB Press Release

“… local broadcast television remains the preferred outlet for NFL viewership”

TVB President and CEO, Steve Lanzano stated, “Game after game and season after season, ratings data confirms that local broadcast television remains the preferred outlet for NFL viewership. This year’s Thursday Night Football airings were another tremendous win for local affiliate stations, with local CBS household ratings and male 25-54 ratings as high as 13 times and 10 times greater, respectively, than viewership on NFLN. Local television continues to dominate the live sports category with reach, engagement and influence that remains unrivaled by any other platform, providing marketers with a unique opportunity to optimize the results of their brand promotion, especially during the NFL season when fans and viewers are highly engaged with this immensely popular programming.”

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As the NFL playoffs reach the semifinals, the big winner so far is local broadcast television.

Updated: Ratings analysis shows viewers prefer watching NFL on broadcast over cable
1/19/2016 02:57:00 PM Eastern Last updated at 1/19/2016 03:38:38PM

Scott Clarke / ESPN Images

Scott Clarke / ESPN Images

As the NFL playoffs reach the semifinals, the big winner so far is local broadcast television.

Viewers prefer to watch the games on broadcast TV over cable, according to an analysis of ratings from Nielsen data conducted by the local broadcast nonprofit trade association TVB.

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Cable channel blacked out? Antenna TV still free for the taking

Ron Hurtibise, Contact Reporter
Sun Sentinel

So you’re an AT&T U-verse customer and you flipped on your TV to watch this month’s NFL playoffs — only to discover a static screen and a message that “This channel is temporarily unavailable and we are working to return it to you soon.”

You might have checked the news and learned the channel was blacked out due to a transmission fee dispute between WSVN, Miami’s Fox affiliate, and AT&T.

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When Cable Outages Hit, HDTV Antennas Provide Back-Up

By Anne Badalamenti
GoMohu.Com

Time Warner Cable Outage Strikes Carolinas

Over the weekend, thousands of Time Warner Cable subscribers experienced cable outages, internet outages, and even phone outages. The outages lasted for hours. People were frustrated they were missing Week 16 NFL action, unable to stream Netflix, etc. And understandably given the ever-increasing cost of cable and internet. This type of outage is nothing new, unfortunately. They seem to occur with such frequency that folks acknowledge it’s part of the package when they sign up with a provider like TWC.

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Cable and Satellite TV Costs Going to Hike in 2016

By FinancialProspect.com
December 26, 2015

The price of pay-tv is proceeding greater for all customers, with a number of Satellite Television businesses and the country’s greatest wire recently saying price increases that’ll take effect.

DirecTV and Tis & AT Uverse, that are today part of the exact same organization, introduced a week ago that their prices may increase Jan. 28, beginning. The increases will be different for clients, but funnel plans various foundation deals and advanced stations might find increases which range from $2 to $8 monthly. New year price increases for DirecTV have grown to be an almost yearly event, using the organization January, increasing costs by around 6 percent.

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Monthly TV-service bills going up — again

By Gerry Smith BLOOMBERG NEWS
Friday December 25, 2015 5:13 AM

Your television-viewing bill is going up. Again.

While facing a growing number of consumers who drop pay-TV for cheaper online alternatives, Time Warner Cable, Comcast, Dish Network and AT&T all are planning to increase their prices early next year — at the risk of turning off more subscribers fed up with the rising cost of television.

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Happy New Year: Dish, DirecTV/AT&T, Time Warner Cable All Raising Rates In January Because They Can

By Kate Cox December 21, 2015

For a bunch of the big cable and satellite companies, it does indeed look like a very merry Christmas and a happy new year are on the horizon — but consumers can be forgiven for feeling a lot more grinchy about it. That’s because all the new nickels, dimes, and dollars that are going to line businesses’ big virtual pockets are coming directly from subscribers in the form of unasked-for price hikes.

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Ventura Broadcasting Company adds channel guide

BY RICK BENTLEY
rbentley@fresnobee.com

Since 2012, Mark Shirin has been growing his local television empire. His Ventura Broadcasting Company now offers 24 channels broadcasting on KGMC (Channel 43.6), KVHF (Channel 4.1), KVBC (Channel 13) and KBID (Channel 31).

That’s a lot of programming. To help, Shirin has added an on-screen channel guide on KVHF to help viewers keep up with what’s being broadcast on the over-the-air channels.

“We strive to satisfy the requests of our viewers,” Shirin says. “One of the biggest complaints that viewers have expressed to us is that there was not a convenient way to get local program information. While we have gone to great lengths to make program guides available online and on mobile devices via our website, that simply wasn’t always convenient for our viewers.”

The guide doesn’t just list stations being broadcast by Ventura Broadcasting; it features all local TV stations.

In addition to the guide, the channel also will offer streaming audio powered by Biz Talk Radio, a nationally syndicated talk-radio network. Biz Talk Radio broadcasts business related programming.

The other recent addition is BUZZR, a classic game show television network. It is available to TV watchers who use an antenna at KVBC (Channel 13.7).

“While BUZZR is not yet a household name, our viewers will surely be familiar with the great classic game shows on the Buzzr Channel, like ‘What’s My Line’ and ‘Family Feud.’ Many of our viewers not only remember the show hosts, but fondly remember the celebrity contestants that appeared on those shows,” Shirin says.

Other game shows featured on the channel include “Let’s Make a Deal,” “Beat the Clock,” “Super Password,” “To Tell the Truth,” “Match Game,” “Password,” “Blockbusters” and “Card Sharks.”

Rick Bentley: (559) 441-6355@RickBentley1

Source: Fresno Bee http://www.fresnobee.com/entertainment/ent-columns-blogs/rick-bentley/article24789562.html


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The Rogues Gallery of Gotham

Much of the real draw of ‘Batman’ lay in the villains…

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