Cable TV companies could lose nearly $1 billion to people cutting the cord over the next year, but some channels will be hit harder than others.
Earlier this year, analysts at Barclays argued that channels you watch when you’re feeling lazy, “inertia channels,” will have a tough time competing moving forward. Others, like BTIG’s Rich Greenfield, have questioned the value of ESPN.
But looking to the past can give us a flavor of what will happen in the future. On Wednesday, CNBC’s Carl Quintanilla tweeted a chart from Deutsche Bank, which showed the linear TV channels with the biggest subscriber losses over the last four years.
In it you can see both “inertia” channels and “sports” channels have been hit hard. MTV and VH1, which are great for simply flipping to without knowing exactly what’s on, saw big losses, as did ESPN and ESPN2. The Weather Channel saw the biggest dip.
Here is the full chart:
A study last month by management consulting firm cg42 estimated that 800,000 cable customers will ditch their subscriptions in the next 12 months. Cg42 expects each customer to be an average loss of $1,248 annually. Cg42 also found that the average cord-cutter saves $104 per month by canceling.
As people leave cable, there are a bunch of companies stepping into the gap to offer more flexible streaming TV services tailored toward younger people. The pioneer is Sling TV, which offers a “skinny bundle” package of 25 channels for $20 per month. But there are other live TV alternatives from companies like Hulu, AT&T, and Amazon reportedly on the way.
Some of these services will preserve the “big bundle” of dozens or hundreds of channels, but some won’t, which will put pressure on channels that aren’t deemed necessary.
It’s almost certain that some will die during the transition.
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.
It’s a huge movement. It’s becoming cool not to pay for bloated cable subscriptions. The internet has made cable obsolete and cable companies know this but they don’t want you to know. Why pay for what you don’t use? It’s invisible clutter. My cable bill was $280 per month and now I pay $77 (not including the subscription services, some of which I was paying for already). You may not save as much as I’m saving because you may not have been paying as much. If you can save an amount that makes a difference in your life and you can meet your home entertainment needs, then why not give it a try? Here’s how I did it:
How much do you pay for cable? The first year with a new cable or satellite provider is generally affordable with the generous promotions, upgrades, and free channels provided. However, after the promotional period ends, our bills always see to creep up a bit more here and there.
Every year the bloating gets larger — an extra fee for that second box we hardly use, all the movie channels that we don’t watch often, the amount of taxes and additional fees we have to pay, and so on.
All of this leads me to my next question. Have you ever thought about cutting the cord on cable or your satellite provider?
By Jill Cataldo CTW Features
April 12, 2016
Dear Jill: I would be interested to hear your thoughts on cable or satellite television. I feel like our cable service is not worth what we are paying for it, but I don’t know what other options we have other than satellite, which costs about the same. I don’t feel like we are ready to completely cancel it, but I also don’t know what to do about the bill continually spiraling. — Robin S.
I’m sure this will surprise no one, but I’m a big fan of free, over-the-air television. Our family never had cable when I was growing up (that was a luxury to enjoy at friends’ houses!) and so my perspective on paying for television is likely somewhat different than those who have never known a world without cable or satellite TV at home. Even now, we have a rooftop antenna on our house, and the antenna has been the primary source of television reception for the majority of the years we’ve lived as a family.
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.
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.
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
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.
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.
By Anne Badalamenti
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.
By 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.
Lloyd “Sonny” Crile traded his satellite TV service for a regular antenna last summer and says there’s no way he’s going back.
“To get the TV channels we wanted (on satellite), we had to take a package giving us about 200 stations,” said Crile, of Oxford. “When we really took a look at what we were watching, other than regular TV, it was only three or four of the 200.”
A report by PricewaterhouseCoopers finds dissatisfaction with bundle is driving customers to join cord-cutting trend
Over-the-air broadcasts are enjoying something of a renaissance in the cord-cutting age. If you live within range of broadcast towers, a simple antenna will deliver basic channels—including ABC, CBS, NBC, Fox, and PBS—in beautiful high definition for free. It’s the perfect supplement to streaming services like Netflix and Amazon Prime.
Posted on March 25, 2015 by Steve Belk
When I cut the cord, I discovered that an antenna provided me access to tons of live HD programming for free. This allowed me to catch NFL games, the local news, and all the popular network TV shows. However, I lost the capability to record these shows and watch them at a later date when the cable company took my DVR back. I also really missed having the ability to pause live TV and skip those annoying commercials.
Luckily, nowadays there are some good OTA DVR options available that allow you to record, pause, skip, and playback all channels you receive through your antenna. Here’s a look at the best DVR options currently available for cord cutters.
Cutting the cord sounds trendy enough but the reality is, there’s quite a bit of thought and consideration that goes into it, and there will be some compromises.
This model has been quite lucrative over the years but the times, they are a changin’.