Data Debunks Cord-Cutting Theories

New data suggesting that very few consumers are cutting the cord on pay-TV subscriptions leads Monday's cable news roundup.

  • In an indication that all that cord-cutting talk is overblown, SNL Kagan says the total number of U.S. pay-TV subscribers grew by about 65,000 during the fourth quarter. (See Comcast CEO Dismisses Cord-Cutting Trend .)

  • Dish Network LLC (Nasdaq: DISH) cut a retransmission consent deal with Lin TV Corp., ending a dispute that saw the satellite-TV giant lose some local broadcast network feeds in 17 markets.

  • MTV Networks ' MTV and VH1 are among the first cable networks to build new versions of their websites optimized for Apple's iPad and other tablets. (See iPad 2: Cable Friend or Foe?)

  • Each touch screen in Apple Inc. (Nasdaq: AAPL)'s iPad 2 costs $127 to produce, making it the tablet's most expensive component, according to IHS iSuppli . (See iPad 2: Fast & Skinny But No USB and Samsung-Built Chip Powers iPad 2.)

  • Sen. Al Franken (D-Minn.) will attempt to rally support on Monday, while House Republicans plan to mark up a resolution to repeal the Federal Communications Commission (FCC) 's net-neutrality resolutions Monday afternoon. (See Net Neutrality Rules in Jeopardy.)

  • YouTube Inc. is telling some Hollywood producers and agents that it's willing to pay them up to $5 million to produce original content channels for its site.

  • Hulu LLC is also beginning to push into original content, and may soon integrate with Facebook and move on a plan to stream video to mobile phones running Google (Nasdaq: GOOG)'s Froyo platform for Android phones.

  • Cable vet Michael Malcy is on to a new pastures, but won't have to move far. He's been named SVP of business development of Alticast Corp. , a tru2way and video software specialist that has an office just down the road from his former company, Advanced Digital Broadcast (ADB) /Vidiom Systems Inc. , in Broomfield, Colo. There, Malcy will be reconnecting with David Housman, a former Videom exec who took over Alticast's Americas unit in 2009. (See Housman Takes Reins at Alticast .)

    — Steve Donohue, Special to Light Reading Cable

  • Pete Baldwin 12/5/2012 | 5:10:30 PM
    re: Data Debunks Cord-Cutting Theories

    Analysts at Stifel Nicolas debunk SNL Kagan's conclusions.  Ex-LR'er Ryan Lawler reports at GigaOm:


    Jeff Baumgartner 12/5/2012 | 5:10:29 PM
    re: Data Debunks Cord-Cutting Theories

    I think that's also why operators like TW Cable are starting to look at lower-cost tiers like that TV Essentials product they rolled out last year.  But that doesn't help out Seven and others who like access to live televised sports  because it excludes ESPN on that tier, which is kept low because they're keeping what is the most expensive net of the lot off of that lineup.  

    But that quasi-ala carte idea Shaw is rolling out is sorta interesting.


    paolo.franzoi 12/5/2012 | 5:10:29 PM
    re: Data Debunks Cord-Cutting Theories


    One thing that is definitely not being discussed is the low incremental cost of Netflix.

    I can do Netflix for $10/month on top of my cable bill (which includes TV and Cable Modem).  As of this minute, it is not enough value for me to drop my broadcast TV service (I like to watch sports).  It is getting to the point of me pondering the removal of premium channels.  I would think that is the bigger near term issue.



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