Light Reading
New numbers from The Diffusion Group show that most US broadband users also subscribe to pay TV.

Kissing Cousins: Broadband & Pay TV

Mari Silbey
1/17/2014
50%
50%

Got broadband? Then chances are you pay for TV service too.

According to The Diffusion Group, 88% of American adults with broadband at home also subscribe to cable, telecom, or satellite TV service. The numbers are higher among older cohorts, while younger adults are notably less likely to pay for television. However, even consumers in the group with the lowest uptake numbers -- adults between ages 25 and 34 -- still purchase TV service at a rate of 81.9%.

Cable operators have watched their video subs slide for years, but consumers have largely migrated to competitive services rather than abandon pay TV for over-the-top (OTT) video altogether. The big question is whether the lower rate of subscription in younger audiences is a sign that they're less interested in pay TV or just at a stage of life where TV service is less relevant or too costly.

Whatever the reason for the age-related trends, service providers are actively working to draw in younger audiences. In addition to multi-screen video delivery, cable operators are also experimenting with new service models.

Cox Communications Inc. trialed an innovative IP video service with Fanhattan LLC 's Fan TV in 2013 and reportedly has another virtual cable service under development. Comcast Corp. (Nasdaq: CMCSA, CMCSK) and Time Warner Cable Inc. (NYSE: TWC), meanwhile, have introduced lower-cost services that combine Internet delivery with a smaller lineup of TV channels and added access to premium content from Home Box Office Inc. (HBO) . (See Cox Eyes IPTV Service .)

There is also renewed interest among service providers in pursuing the university market. Philo (formerly Tivli) -- a startup that enjoys backing from high-profile investors such as Mark Cuban -- has successfully signed up several schools for its college-specific IP video platform.

Comcast has also introduced an Xfinity on Campus service. That offering launched first at Boston's Emerson College and will reportedly take off next at Drexel University. (See also Tales of Tivli: Taking TVE to School.)

There's a theory here. Hook consumers while they're young. That may be the best way to keep subscription numbers high across a lifetime.

— Mari Silbey, special to Light Reading

(10)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
albreznick
50%
50%
albreznick,
User Rank: Blogger
1/21/2014 | 6:19:12 PM
Re: Cox
That would make sense, Dan. But cable operators don't necessarily always do the sensible thing. So we shall see. BTW, who's your cable operator? Comcast?
albreznick
50%
50%
albreznick,
User Rank: Blogger
1/21/2014 | 6:17:46 PM
Re: Forget Pay TV
Sounds like you've cut the cord already, Sam. So is this the death knell for the traditional pay TV model? 
sam masud
50%
50%
sam masud,
User Rank: Light Sabre
1/21/2014 | 9:55:59 AM
Forget Pay TV
I suspect a key reason why a lot of people, particularly younger people, pay for "traditional" TV is because often something they'd like to watch is not available immediately as OTT TV. Other than that I cannot think of a single reason why anyone would want to pay the high rates for traditional TV and, equally important, only be able to watch a program at the time it's broadcast.
DOShea
50%
50%
DOShea,
User Rank: Blogger
1/18/2014 | 3:43:06 PM
Re: Cox
If the local sports issue were to really change, I'm almost more interested in first seeing how my cable TV company tries to respond. They aren't just going to let huge numbers of us go without radically changing their approach to pricing, bundles, etc., right? Maybe they shouldn't be waiting, but they must feel they can quickly revamp their whole game if this ever happens.
albreznick
50%
50%
albreznick,
User Rank: Blogger
1/17/2014 | 5:59:01 PM
Re: Cox
I agree with both of you, if that's possible. More and more folks are looking for alternatives to the cable-led status quo. But many, if not most, of us have not found it yet, at least partly because we don't want to lose our precious local sportts programming. If the sports TV equation should ever change, and it just might, then the doors will fly wide open for cord cutters and shavers.     
Phil_Britt
50%
50%
Phil_Britt,
User Rank: Light Sabre
1/17/2014 | 5:31:36 PM
Re: Cox
Not actively looking, but certainly keeping eyes on Light Reading to see if workable solutions become apparent. Again, the stickler tends to be sports. I don't want to pay an extra fee to watch the Bears (some games, I felt I should have been paid) and other home teams that I get, including some games on Big Ten network that is part of cable package. 

Most other video I can get online or for a lower cost than cable. Now if soomeone comes up with a way to cobble together everything I want for a lower cost, great. I think that will eventually happen as cable keeps boosting triple play costs.

However, triple play providers aren't the only culprits in boosting fees. Programming providers keep boosting the fees they charge as well. So even alternate video providers must find some way to keep increasing their revenues to keep up with rising costs.
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
1/17/2014 | 5:19:53 PM
Re: Cox
Ah, but you are looking, right? And that's my point - I haven't found the perfect solution het, but we're looking and when we found something reasonable, I'm happy to cut or shave the cable cord. 
Phil_Britt
50%
50%
Phil_Britt,
User Rank: Light Sabre
1/17/2014 | 5:18:36 PM
Re: Cox
I hate to see the triple play costs increasing as well, but so far have yet to find a better option due to my personal viewing habits. There are some lower cost options available, but not if I don't want to pay extra for the sports programming I get via a basic cable package. I still prefer a VOIP phone over a cell at home, but do see a point where the triple play cost will not be the best option. Just haven't hit it yet.
Carol Wilson
50%
50%
Carol Wilson,
User Rank: Blogger
1/17/2014 | 4:44:26 PM
Re: Cox
Those of us in triple play bundles just see our bills go up, up, and up and as much as I dislike the change process, there is tremendous motivation to explore other options arriving in my mailbox (or email) once a month. 
KBode
50%
50%
KBode,
User Rank: Light Sabre
1/17/2014 | 2:15:47 PM
Cox
Did anything ever come of that Cox effort? If I remember that was the first attempt at offering an OTA solution without tying it to traditional cable authentication, but the Orange County trial lasted only a month or something. Any chance cable could explore an OTA solution like the rumored one Verizon is working on outside of their FiOS footprint? I understand the fear is cannabalization of existing legacy TV tiers, but you'd think they could avoid that via just offering smaller bundles or something.
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Custom TV
Using Service Quality to Drive WiFi Monetization

10|22|14   |   6:51   |   (0) comments


Live from the SCTE conference: Heavy Reading's Alan Breznick explores the forces shaping the WiFi opportunity in an interview with CableLabs' Justin Colwell and Amdocs' Ken Roulier.
LRTV Custom TV
Distributed Access Architectures – 2

10|21|14   |   8:51:00 AM   |   (0) comments


ARRIS CTO Network Solutions Tom Cloonan discusses why many if not most MSOs will continue with integrated CCAP, while addressing why some are also looking at two futuristic, distributed access architectures: Remote PHY and Remote CCAP.
LRTV Custom TV
Distributed Access Architectures – 1

10|21|14   |   9:01   |   (0) comments


SCTE Sr. Director of Engineering Dean Stoneback discusses the pros and cons of distributed access architecture (DAA) and its various forms, which range from basic Remote PHY to full CMTS functionality in the node.
LRTV Custom TV
The WiFi Road to Riches – 2

10|21|14   |   3:58   |   (0) comments


ARRIS Senior Solution Architect Eli Baruch talks about how MSOs can enable public and community WiFi through 1) outdoor access points, 2) businesses seeking to offer WiFi to customers, and 3) residential WiFi gateway extensions.
LRTV Custom TV
The WiFi Road to Riches – 1

10|21|14   |   10:15   |   (0) comments


SCTE Director of Advanced Technologies Steve Harris discusses WiFi deployments, drivers, challenges and advances, including 802.11ac, carrier-grade WiFi, community WiFi, Hotspot 2.0, Passpoint, WiFi-First and voice-over-WiFi.
LRTV Custom TV
Advantech Accelerates 100G Traffic Handling

10|17|14   |   7:56   |   (0) comments


Paul Stevens from Advantech explains why handling 100GbE needs a whole new platform design approach and how Advantech is addressing the needs of equipment providers and carriers to give them the flexibility and performance they will need for SDN and NFV deployment.
LRTV Huawei Video Resource Center
Holland's Imtech Traffic & Infra Discusses Huawei's ICT Solution and Services

10|16|14   |   4:49   |   (0) comments


Dimitry Theebe is from the business unit at Imtech Traffic & Infra which delivers communications solutions for transportations. His partnershp with Huawei began about a years ago. In this video, Theebe speaks more about this partnership and what he hopes to accomplish with Huawei.
LRTV Huawei Video Resource Center
Huawei's Comprehensive Storage Solutions Vital for SVR

10|16|14   |   6:16   |   (0) comments


SVR Information Technology provides cloud services for academic and special sectors. With Huawei's support, SVR and Yildiz Technical University has established Turkey's largest and most advanced High Performance Computing system. CSO Ismail Cem Aslan talks about what he hopes Huawei's OceanStor storage system will bring for him.
LRTV Huawei Video Resource Center
Mexico's Servitron's Impression of Huawei at CCW 2014

10|16|14   |   6:35   |   (0) comments


Servitron is a network operator in Mexico that has been in the trunking industry for the past 20 years. Its COO, Ing. Ragnar Trillo O., explains at Critical Communications World 2014 that his company has been interested in the long-term evolution of LTE technology and its adoption for TETRA.
LRTV Huawei Video Resource Center
Building a Better Dubai

10|16|14   |   2:06   |   (0) comments


Abdulla Ahmed Al Falasi is the director of commercial affairs, a telecommunications coordinator for the government of Dubai. Their areas of service span across multiple industries, including police, safety, shopping malls and more. In this video, Abdulla talks about his department's work with Huawei.
LRTV Huawei Video Resource Center
Huawei Lights Up Malaysia Partner Maju Nusa

10|16|14   |   1:59   |   (0) comments


Malaysia's Maju Nusa is an enterprise partner to Huawei in networking, route switches and telco equipment. At this year's Critical Communications World in Singapore, CTO Pushpender Singh talks about what Huawei's eLTE solutions mean to his company and for Malaysia.
LRTV Custom TV
Evolving From HFC to FTTH Networks

10|15|14   |   2:19   |   (0) comments


Cisco's Todd McCrum delves into the future of cable's HFC plant, examining how DOCSIS 3.1 and advanced video compression will extend its life and how the IP video transition will usher in GPON and EPON over FTTH.
Upcoming Live Events
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Is Health the Killer App for the IoT?
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/22/2014
Drones Hover Over the IoT Sector
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 10/23/2014
Analysts Warn of Major NFV Gaps
Carol Wilson, Editor-at-large, 10/22/2014
Roku Raises $25M, But for What?
Mari Silbey, Independent Technology Editor, 10/23/2014
AT&T: Merger Review Halt Won't Hurt Us
Alan Breznick, Cable/Video Practice Leader, 10/23/2014
Like Us on Facebook
Twitter Feed