Domain: leichtmanresearch.com
Stories and comments across the archive that link to leichtmanresearch.com.
Stories · 6
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Cord-Cutting in America May Have Already Peaked (fool.com)
An anonymous reader quotes the Motley Fool: Cord-cutting has been a massive thorn in the side of pay-TV distributors and television media companies for nearly a decade. After U.S. pay-TV subscribers peaked in 2010 at 105 million households, about 14 million homes have cut the cord, according to a report from Digital TV Research. The trend has only accelerated in recent years. 2018 saw nearly double the amount of cord-cutting over 2017, according to Leichtman Research.
But 2018 might've been the pay-TV industry's worst year for cord-cutting. The U.S. will lose fewer pay-TV subscribers this year than last, according to Digital TV Research. And the research firm suggests annual losses will continue to decline next decade. -
The Average Cable Bill Has Increased More Than 50 Percent Since 2010 (streamingobserver.com)
According to new research, the average cost households pay for cable is now up to $107 a month -- that's a 50% increase since 2010 when cable bills were $71.24 a month. When compared to last year, it's only a 1% increase, "thanks in large part to increasing fees for things like regional sports licensing and taxes," reports Streaming Observer. From the report: Leichtman Research Group's data was gathered through a telephone survey of 1,152 households from throughout the United States. The research found that 78% of American households still subscribe to a paid TV subscription. That percentage is down from 86% in 2013, 87% in 2008, and 81% in 2004, but 78% is still a pretty high figure given how high cable costs continue to rise each year and how affordable streaming video services are in comparison. -
Netflix Has More American Subscribers Than Cable TV (engadget.com)
According to Leichtman Research estimates from the first quarter of 2017, there are more Netflix subscribers in the U.S. (50.85 million) than there are customers for major cable TV networks (48.61 million). While it doesn't mean Netflix is bigger than TV because it doesn't account for the 33.19 million satellite viewers, it represents a huge milestone for a streaming service that had half as many users just 5 years ago. Engadget reports: The shift in power comes in part through Netflix's ever-greater reliance on originals. There's enough high-quality material that it can compete with more established networks. However, it's also getting a boost from the decline of conventional TV. Those traditional sources lost 760,000 subscribers in the first quarter of the year versus 120,000 a year earlier. Leichtman believes a combination of cord cutters and reduced marketing toward cost-conscious viewers is to blame. Cable giants might not be in dire straits, but they're clearly focusing on their most lucrative customers as others jump ship for the internet. -
Comcast and Charter Agree Not To Compete Against Each Other In Wireless (arstechnica.com)
Comcast and Charter announced an agreement to cooperate in their plans to sell mobile phone service, an agreement that also forbids each company from making wireless mergers and acquisitions without the other's consent for one year. "That agreement could stoke Wall Street speculation among investors and analysts that the two largest U.S. cable companies together could decide to make a play for a carrier like T-Mobile U.S. Inc. or Sprint Corp.," wrote The Wall Street Journal. Ars Technica reports: The deal could violate antitrust law, said Harold Feld, an attorney and senior VP of consumer advocacy group Public Knowledge. "One of the basic ideas of antitrust law is that when companies that compete with each other, or could compete with each other, make an explicit agreement to not compete with each other, that violates the antitrust laws," Feld told Ars today. "Agreeing to coordinate with each other to avoid competition is expressly a violation of the antitrust laws." But that doesn't mean Comcast and Charter won't be able to follow through with their plan. It's impossible to say with absolute certainty whether any specific agreement violates antitrust law, and "both Comcast and Charter have very good lawyers," Feld said. Comcast and Charter have a combined 47 million internet subscribers, dominating the US market for high-speed broadband, but they do not compete against each other in any city or town. The Comcast/Charter cooperation agreement fits in nicely with Comcast's mobile plans, because the company intends to sell smartphone data plans only to customers who also have Comcast home Internet service. Comcast's mobile service is scheduled to be available by the end of June, while Charter has said it intends to offer similar service in 2018. -
Subscribers Pay 61 Cents Per Hour of Cable, But Only 20 Cents Per Hour of Netflix (allflicks.net)
An anonymous reader writes from a math-heavy report via AllFlicks: The folks at AllFlicks decided to crunch some numbers to determine just how much more expensive cable is than Netflix. They answered the question: how much does Netflix cost per hour of content viewed, and how does that compare with cable's figures? AllFlicks reports: "We know from Netflix's own numbers that Netflix's more than 75 million users stream 125 million hours of content every day. So that's (roughly) 100 minutes per user, per day. Using the price of Netflix's most popular plan ($9.99) and a 30-day month, we can say that the average user is paying about 0.33 cents per minute of content, or 20 cents an hour. Not bad! But what about cable? Well, Nielsen tells us that the average American adult cable subscriber watches 2,260 minutes of TV per week (including timeshifted TV). That's equivalent to 5.38 hours per day, or 161.43 hours per 30-day month. Thanks to Leichtman Research, we know that the average American pays $99.10 per month for cable TV. That means that subscribers are paying a whopping 61.4 cents per hour to watch cable TV -- more than three times as much as users pay per hour of Netflix!" -
Broadband Subscribers Eclipsing Cable TV Subscribers
An anonymous reader writes: High-speed internet has become an everyday tool for most people, and cord-cutters have dramatically slowed the growth of cable TV, so this had to happen eventually: broadband internet subscribers now outnumber cable TV subscribers among the top cable providers in the U.S. According to a new report, these providers account for 49,915,000 broadband subscribers, edging out the number of cable subscribers by about 5,000. As Re/code's Peter Kafka notes, this means that for better or worse, the cable guys are now the internet guys. Kafka says their future is "selling you access to data pipes, and pay TV will be one of the things you use those pipes for."