ibc0109v3_ibc 01/09/2015 11:12 Page 3
TDG: 'Cord-Cutting unrealistic
for most viewers'
ccording to Alan
Wolk, Senior Analyst
with The Diffusion
Group (TDG), whilst there
was much consternation
about the Q2 2015 pay-TV
subscriber statistics (along
with a dramatic sell-off on
Wall Street), a closer look at
those numbers reveals a lot
less gloom and doom than
originally reported, with
factors such as insignificant
cost savings and inferior user
experience militating against
cord-cutting.
In a Blog Post, Wolk accepted
that the top 13 MVPDs lost close
to 0.5% of their subscribers last
A
cobbling together an OTT system
that replicates a robust cable
package rarely results in any
significant cost savings,
particularly now that there are
more options. “Once you’ve added
on all the major streaming
services (Netflix, Hulu, and
Amazon), plus a kids-and-sports
package from a virtual provider
like Sling, plus access to HBO
and Showtime, your package
may well be more expensive
than the one you were getting
from Comcast. This may not
be the case if you are among
the 67 per cent of ABUs (adult
broadband users) with no
children living in the home, or are
an infrequent television
viewer, content with a
package of three or four
apps and limited access
to live broadcasts.
However, more avid
viewers (those watching
15 or more hours a
week) and viewers who rely on
premium networks will not see
considerable cost savings.”
Another factor, according to
Wolk, is the interface, or rather
the complete lack of one. “While
going from app to app may work
on your phone, it’s not a
particularly expedient way to
watch television. There’s no way
“Unless you’re an
infrequent TV viewer,
the cord-free experience
quite frankly sucks.”
quarter (around 500,000), but
suggests that when you cull the
top 13 down to the top nine, the
results are a lot less negative.
“Not only did those top nine
providers (responsible for close to
90 per cent of cable pay-TV
subscribers) manage to reduce the
number of losses vs. Q2 2014 by
half, they also logged the smallest
number of Q2 losses they’ve had
since Q2 ’08.”
“So is it all roses and unicorns
in pay-TV land or should we hold
on to our scepticism,” he asks.
“Right now, we’d have to say
the roses and unicorns are
winning. While pay-TV is facing a
world of problems, cord-cutting
(and even