Cutting the cable cord sounds good, but is anyone really doing it?

cordcutting.jpgThe pay-TV business (that includes cable, satellite, and telco) saw only modest growth in 2012, according to SNL Kagan, which will add fuel to claims that viewers - especially young viewers - are switching to cheaper ways of accessing content. The number of pay-TV subscribers totaled 100.4 million in 2012, a pickup of only 46,000 from a year earlier. Cable continued to lose ground, as it has for years, while telcos like Verizon and AT&T gained ground. All told, call it a wash. But there's little evidence that the cord-cutting movement has picked up much momentum,. A Morgan Stanley survey of pay TV customers found that 17 percent said they were willing to cut the cord - only a bit more than last year. ATD's Peter Kafka is right when he says that it's a little like wanting to be a vegan. It's a nice idea until you realize how impractical it is. That's especially true when it comes to sports programming, which is why rights fees continue to climb off the charts - and why pay-TV subscribers are seeing their rates inch higher. Truth is, traditional distribution channels continue to dominate TV-watching because it's still the easiest and most reliable way to see the most content. Not all content, but enough.


More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent Television stories:
Lucy Noland leaves NBC4, Chang has her surgery
ABC7 adds 8 pm news hour -- on Orange County channel
PBS SoCal drops its Orange County news show
Still smoking the cannibus at KCAL, I see
Fox 11's Julie Chang announces she has a brain tumor

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner


Advertisement
Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook