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Cable Industry Finally Fights Cord Cutting With Fewer Ads (dslreports.com)

The cable industry is slowly realizing that more advertisements and higher prices aren't the solution to cord cutting. Karl Bode writes via DSLReports: AT&T and Dish have explored offering cheaper, more flexible streaming alternatives (DirecTV Now and Sling TV, respectively), both understanding that getting out ahead of the cord cutting trend is the right play, even if the net result is making less money from traditional television. And on the broadcasting front, several companies this month made it clear they'll be reducing the ad loads on their programming, since charging users a subscription fee and socking them with endless ads is becoming a dated concept in the cord cutting era. Fox, for example, told the Wall Street Journal this week that the company would be reducing TV ad time in its content to two minutes an hour by 2020. Comcast NBC Universal says it's also following suit, having cut advertising time in its own shows by 10%, and reduced the overall number of advertising during commercial breaks by 20%. Given there's 83 million households still subscribing to traditional cable TV, many cable executives are under the false impression they can keep doubling down on bad ideas without the check coming due. But the data indicates this head in the sand approach simply isn't sustainable. Pay TV providers saw a reduction of more than 500,000 traditional pay TV customers during the fourth quarter, a decline of 3.4% total pay TV customers from the year before. That 3.4% decline was up from the 2% rate during in the fourth quarter of 2016 and a 1% rate of decline one year before that.

20 of 106 comments (clear)

  1. Just cut the cord myself by Cowclops · · Score: 5, Informative

    I made the decision this week to cut the cord myself and I dropped all my TV equipment today.

    In an industry where high price/low value is cited by 80% of the people dropping their TV service, I was told that I had to pay an extra $60 a month to get a "free" internet speed upgrade to switch from a grandfathered TWC plan to a new spectrum plan with no other benefits. $145->$205.

    Instead I opted to drop tv, drop my bill to $65, and get the "still techncially supposed to be free" bump from 60x5 to 100x10.

    I just don't know how they think people wil pay $140 for Cable TV when there are so many solid alternatives that are under $40 if not under $30 a month (Sling, Hulu, Netflix, Etc).

    1. Re:Just cut the cord myself by Rick+Schumann · · Score: 2

      How about a one-time expense of installing an antenna on your house and never pay again? Do you really have so much free time that you need to fill it with passive entertainment?

    2. Re:Just cut the cord myself by Firethorn · · Score: 5, Interesting

      I live in a fairly rural area and have about 4 non-religious stations within reach. Consider that OTA stations are all advertising supported as well.

      I'd argue that it's just the opposite: I have so little free time that $8/month for a Netflix plan is well worth it.

      https://www.statista.com/stati...

      They say 693 seconds of advertising per hour, average, for broadcast TV. 11 minutes and 33 seconds of ads.
      That is 5 hours, 46 minutes, 30 seconds per month, assuming that you average 1 hour/day.

      Using Netflix as a plan to avoid that? $1.38/hour to avoid advertising. That's less than minimum wage. Worth it.

      --
      I don't read AC A human right
    3. Re:Just cut the cord myself by blackomegax · · Score: 4, Insightful

      Plus, there's an amazing mental thing that occurs when you cut *all ads* out of your life (to the extent one can, anyway). ublock, netflix-only, pirating, etc. Watching an ad gives some soulless corporate free rent in your mind, sometimes to the tune of HOURS from a 30 second ad. That's time you spend *not being you, but being a corporate drone.*

    4. Re:Just cut the cord myself by jon3k · · Score: 2

      Congratulations, seriously. I did the same thing a few years back and it really is a matter of habit. You get so used to having the TV on or making it part of your life. Within a month of not having it you'll wonder why you didn't do it sooner. I certainly learned to really appreciate a nice, quiet home.

  2. Buh-bye by PopeRatzo · · Score: 4, Insightful

    AT&T and Comcast can just fuck right off. Lower your goddamn prices and improve customer service and then maybe we can talk. And please stop trying to contact me. When I want to talk to you, I'll let you know.

    --
    You are welcome on my lawn.
  3. What I want... by Archfeld · · Score: 4, Insightful

    I want a 30 channel subscription that allows me to select all 30 stations from a lineup on a 30 day interval. A menu that allows me to checkbox what stations I want and then change them on a monthly basis. You pay a minimum for just basic connectivity, and then a tiered level that allows you to choose the stations YOU want, not some carefully constructed pack that is calculated to spread the popular channels through out 5 packs which in the end costs you the same or more as you would spend on a traditional tiered system. I want the program to be streamed to me at high speed so I can fast forward and reverse even if it is not on my DVR. I want enough memory in my set top box to store 30 minutes of HD video. I would even stomach a few ads, the more targeted the better, I hate watching ads for diapers or baby food, or feminine products. I hate watching an ad for the show I am currently watching...*cough* El Rey Network. I love hockey but what is the point of the NHL network in the offseason, or for that matter what is the point of OWN period ?

    --
    errr....umm...*whooosh* *whoosh* Is this thing on ?
    1. Re:What I want... by Areyoukiddingme · · Score: 4, Interesting

      I want a 30 channel subscription that allows me to select all 30 stations from a lineup on a 30 day interval.

      Charter is piloting a "Pick 20" a la carte package in my area. A quick scan of the available channels to choose from gave me the impression it didn't completely suck, too, which was a bit of a surprise. I got the mailing because I buy internet but not TV. Haven't in years and years. Still didn't, even with options. The price was definitely much lower than their usual. +$20 instead of +$40 on top of Internet.

      Now if I gave a damn about commercial television, maybe...

  4. Fuck them all by Crypto+Gnome · · Score: 2, Interesting

    The entire advertising industry and everyone who depends on them have shown themselves to be unethical , and morally bankrupt. They ALL deseeve to die in a nuclear accident.

    --
    Visit CryptoGnome in his home.
  5. No ads by hambone142 · · Score: 4, Insightful

    I recall buying cable TV because it had NO ADs.

    Now we get to pay to see ads.

    They're cutting their own throats and I have no sympathy for cable companies.

  6. too little, too late. by MrKaos · · Score: 4, Insightful

    I stopped watching in 2013 because the ads are just too in my face. I started playing a game of, flick the ad off before the message so that I got the art work but not the message until I realised the shows kind of sucked as well.

    The shows that didn't suck I didn't watch because of the ads and waited until they were re-runs that I could binge watch without commercials.

    I think it has had a positive impact on my mental health as well, I feel a lot less stressed since I stopped watching all that crap.

    --
    My ism, it's full of beliefs.
    1. Re:too little, too late. by hjf · · Score: 2

      fox latin america is the worst. It's just horrible. They cut scenes off shows, and at the end, squeeze the credits to the side and fast forward them. All to show more ads.
      And even worse, BIG, HUGE LETERS with countdowns:
      29 DAYS, 2 HOURS AND 30 SECONDS UNTIL THE SEASON PREMIERE OF THE WALKING DEAD.
      That sign is up for the whole month, taking about 10% of the screen.
      When the walking dead season premiere is up, the sign is changed:
      WALKING DEAD SEASON PREMIERE.

  7. Locals and HBO without CNN by tepples · · Score: 2

    Let me try to reconcile these comments: hambone142 probably remembers buying cable TV in the 1970s when it had only the locals, public access, and "subscription services such as HBO", before there were "cable, but not subscription, channels such as CNN". Are cable TV operators still allowed to require subscribers to buy a package of "cable, but not subscription, channels such as CNN" before allowing them to buy "subscription services such as HBO"?

    1. Re:Locals and HBO without CNN by tepples · · Score: 2

      Then hambone142 remembers when there were fewer or no content providers who chose to dictate such terms to cable operators.

  8. Re: Not enough by Anonymous Coward · · Score: 2, Insightful

    Told my kids we we're going to watch a Christmas special I loved as a kid. Told them we had to wait until Thursday at 6 pm because that is when it's on the local channel. They looked at me like, da fuq?

  9. Re:Much Too Late by StormReaver · · Score: 4, Informative

    They're only about 10 years too late.

    Yep. If they had done this 10 years ago, they might have had a fighting chance. As it is, their service got so bad that they overcame people's resistance to change and drove them to the experiment of dropping the service. Now, dropping service has gotten such a good reputation that the rate of doing so is increasing dramatically.

    If cord cutting hasn't reached critical mass yet, it is so close as to be nearly unavoidable.

  10. Just cull the damn medical commercials by nehumanuscrede · · Score: 2

    If they would just cull the " Ask your Doctor if $stupidly_expensive_drug is right for you " ads, it would cut the total ad times by at least HALF.

    No one wants to see that sh*t. I personally make it a point to refuse any medication that constantly begs me to use it.

    1. Re:Just cull the damn medical commercials by Registered+Coward+v2 · · Score: 2

      If they would just cull the " Ask your Doctor if $stupidly_expensive_drug is right for you " ads, it would cut the total ad times by at least HALF.

      No one wants to see that sh*t. I personally make it a point to refuse any medication that constantly begs me to use it.

      You can thank the government for that. I had a friend in pharmaceutical sales who was once called in by his boss about his expense account. Seems there was a problem with the numbers; he wasn't spending enough on entertaining doctors. As long as it was legal he could spend money on keeping doctors happy as an entertainment expense. Drs liked cigars? Best cigar bar in town and the drinks and cigars were on him. Medical convention and his MD's wanted to go to a strip club? Lap dances and drinks on him. When the government ended dri\ug companies ability to freely market that way, the drug companies switched from getting doctors to write script to trying to get patients to ask for specific drugs.

      --
      I'm a consultant - I convert gibberish into cash-flow.
  11. Not good enough. by generic_screenname · · Score: 3, Insightful

    I'll come back when I can have a la carte subscriptions to quality content without ads.

  12. Re:Too late for me by misnohmer · · Score: 3, Insightful

    The "too late" has a much more profound effect. For me it was the continually increasing monthly bill while on a "fixed price" plan. Once I cut the cord, I realized I can get more of what I want for less money simply with an HD antenna, a DVR, and content I purchase to stream over the internet. What Comcast didn't realize that once people cut the cord, they find better alternatives which make Comcast service worth less to those people. It's like, "I used to pay you $30/month. Comcast decided to raise by $0.50 to $1.50 per month. Once it reached $80 I cut the cord and realized I get all I want for less than $25/month (on top of internet, but I need internet anyways, different provider) and I get it commercial free. The only way I see myself again using cable TV with commercials is if it was completely free, since really it would just replace my HD antenna and give me a handful more channels that I might care to watch.

    Sorry Comcast, want to feed me ads, you gotta provide the content for free now that I know I can get it elsewhere commercial free for less money that I used to pay you.