Punch line: The number of people subscribing to US cable television services has suffered its biggest decline in 30 years as younger, tech-savvy viewers lead an exodus to web-based operations, such as Hulu and Netflix.
From the Financial Times …
The total number of subscribers to TV services provided by cable operators fell by 741,000 in Q3-2010.
The data suggest that “cord-cutting” – one of the pay-television industry’s biggest fears – is becoming a reality as viewers drift to web-based platforms.
The growth of Hulu and Netflix, the DVD subscription company which began testing a $7.99 per month streaming-only service last month, has become problematic for cable operators.
Hulu’s revenues are increasing sharply: the company is projected to generate more than $240m in 2010, up from $108m in 2009.
Devices such as Apple’s iPad also appear to be accelerating the move away from traditional multichannel television. More than a third of iPad users say they are likely to cancel their pay-TV subscriptions in the next six months.
The cable industry has launched a vigorous defense against cord-cutting: companies such as Comcast are backing “TV Everywhere”, which gives subscribers access to channels and programming online, and via their cable box.
Viewers pull plug on US cable television, November 17 2010
http://www.ft.com/cms/s/0/a3986a1c-f28c-11df-a2f3-00144feab49a.html#axzz15aLGqwx6
The Homa Files 
November 18, 2010 at 6:02 pm |
As a Hulu and Netflix subscriber who has cut cable, uses only Verizon DSL and is going to purchase a decent DVR for network TV (I know a few that exist – just a matter of time), I approve (of) this message, because ComCast and many cable companies have no concept of customer service worth discussing.