In The News

Cutting the Cord

January 02, 2015

For many cable and satellite-viewers, the argument against cutting the cord centers on tuning into live sporting events. That, too, could be changing. The NBA’s new deal with ESPN and Turner Sports, which begins in 2016, establishes a framework for online-only, standalone streaming.

Although the dust is still settling, the landscape is shifting. According to Bloomberg, in 2013, the number of Americans subscribing to cable or satellite TV service declined for the first time, and a November 2014 report from the Leichtman Research Group says, “Over the past year, major pay-TV providers lost about 105,000 subscribers – compared to a loss of about 45,000 over the prior year.” Meanwhile, according to Experian Marketing Services, the number of cord-cutters has grown by 44 percent since 2010, and Parks Associates, a market research firm, says 10 percent of U.S. broadband households purchased a streaming media device in 2014 alone.

From the article "Cutting the Cord" by Dan Shafer.

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Parks Associates announced that the churn rate for OTT video services is 19% of US broadband households, indicating roughly one in five households have cancelled an OTT service in the past 12 months....

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