SNL Kagan: Cable Subs Fall In 15 Biggest Markets
Report shows telco growth
By Jon Lafayette -- Broadcasting & Cable, 6/23/2011 9:54:56 AM
While the number of cable subscribers fell to 23.2 million from 24.1 million in big cities, satellite saw a small increase of 0.1% to 10.6 million. Telco subs jumped 24% to 4.4 million. Overall, the number of multichannel subscribers fell 0.1% to 38.2 million in the quarter in the biggest 15 markets.
In some big markets, the total number of multichannel video subscribers fell significantly. New York registered a 0.8% drop. In Chicago, subs were down 2.3% and in Dallas they were off 5.2%. The biggest drop was registered in Atlanta, where there was a 5.2% decrease. Subs also fell in Detroit, Phoenix, Seattle and Minneapolis/St. Paul.
In Los Angeles, the number of multichannel subscribers rose 3.9%. Gains were also seen in Philadelphia, Washington, D.C., Houston, and Tampa/St. Petersburg.
The gains in Los Angeles represented a 2% pickup by satellite and a 50.9% jump by telco. Cable subscribers fell by 4%.
Comcast is the largest multichannel operator in the top 15 markets with 11.6 million subs, followed by DirecTV, Dish Network and Time Warne Cable, SNL Kagan said.
Telco video market share is creeping up in major markets, reaching 23% in Dallas, nearly 20% in Washington, D.C. and more than 17%in Tampa-St. Petersburg and Houston..
Outside the top 15 markets, telco video market share is more than 23% in Baltimore (No. 26), at 20% in Richmond-Petersburg, Va., (No. 57) and 15% in Providence-New Bedford, R.I.-Mass. (No. 53), all FiOS markets. The highest market share for AT&T's U-verse is in Houston at 17%, followed by Dallas at 13%, Kagan said.
And still, cable companies refuse to create an a la carte tier. They will continue to sit back like frogs allowing the water around them to come to a boil. Next thing you know they will find themselves in the same situation as land line telephone providers.
Dave FL - 6/24/2011 1:32:05 PM EDT
Cable fails to measure content based on return on investment measuring content acquisition based on leverage of media companies loads the cost with little return. Independent content is cut out that could be much more interesting to viewers. So prices are pushed by monolithic media companies, to the detriment of cable Companies and consumers. The hoped for variety of programing is now controlled by five media companies. So independent content will continue to bypass the traditional distributors.
Ed Frazier - 6/24/2011 10:17:58 AM EDT
Cable has met the enemy and it is us with apologies to Pogo. Cable TV handling of subscribers is a mess at a very critical time.
With 60% Gen Y at risk for pay TV and 40% poverty level, cable has reached tipping point of passing content costs directly to subscribers. There are much better revenue models using behavioral targeted marketing and direct ads based on social media analystics from facebook and Twitter. They are currently using a flawed demographic model via Canoe Ventures.Xfinity and other tools must be adjusted to reducing subscriber costs first, and not anything with additional cost. Subs are now more than willing to take Netflix (more subs than Comcast) and create their own de facto ala carte via satellite, telco and Internet - Apple and Google TV which they prefer over cable, due to perceived cable TV price gouging, and poor customer service
Herb Lair - 6/24/2011 7:42:39 AM EDT
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