Of Course It Is

I have said this for years, cord cutting will not reduce costs for people seeking content around the country.  This is just the latest recognition of the fact that the content producers control pricing and they will not deeply discount their products because you get it through the Internet or through a cable.  One caveat...this does not take into account ala carte.  This is a simple apples to apples comparison of like packages.

CORD-CUTTING NO BARGAIN

Wall Street Journal

personal technology writer Geoffrey A. Fowler is clearly a fan of cord-cutting—at least in theory. "But after reviewing pretty much every available Internet TV service, streaming box and smart TV, I’ve yet to find a replacement that covers all the TV bases while costing less," he wrote in a detailed analysis piece.

First off, Fowler says you have to have a fast Internet connection to make video streaming viable. And, for most people, the best deal comes from an MVPD, which is also pushing its TV service. He notes that cord-cutters have to give up a lot of live TV, although more is becoming available from OTT services. To replace cable most people will have to subscribe to multiple streaming services—which is complicated. And for all that effort, he notes, the cord-cutter may not save any money. 

Cheating

Sorry for the distance between posts, just got back from a week long vacation.  I wanted to post this becasue I am always reading the smug comments on social media about people who don't pay for content and accuse anyone who does of being chumps.  They are, simply put, stealing.


‘CORD CHEATING’ WORSE THAN THOUGHT
According to new research from

The Diffusion Group (TDG), more than 20% of adult broadband users who stream video from an online subscription service are "cord cheaters"—consumers who access these services using the account name and password of someone that does not reside in their household. "While it is widely acknowledged that ‘cord cheating’ is occurring, few comprehend how widespread the behavior has become," said Michael Greeson, TDG Founder and Director of Research.

According to a TDG’s latest research, a sizable segment of online subscription video viewers live in households that are not paying to enjoy on-demand access to movies, TV programs, and a host of other high-value video content. Content providers are losing substantial revenue by not enforcing more restrictive authentication procedures.

Importantly, the rate of "cord cheating" varies dramatically among OTT SVOD services. For example, 20% of

Netflix streamers are guilty of using non-resident credentials, compared with only 10% of Amazon Prime streamers. Even Dish Network’s new Sling TV service is not immune to this behavior, with an astounding 26% of viewers reporting that they use the credentials of someone living outside their home.

"This behavior reflects the unfortunate mindset among
many of today’s media users that it’s perfectly acceptable to ‘share’ digital media—whether files or service access— among friends and family," notes Greeson.

And in other news.....

JANUARY: CABLE BETTER THAN BROADCAST

Writing on the company blog,

Standard Media Index (SMI) Chief Commercial Officer James Fennessy says that digital spending jumped 30% in January, while TV got off to a slow start for the year. SMI calculates that digital now commands 27% of all national ad spend—up dramatically from only 19% share just two years ago. "A key driver of this growth is digital video, which has emerged as the fastest-expanding segment of the digital market, thanks to leading networks making more of their inventory available to consumers through their digital platforms," he said. Fennessey added that the trend is only set to accelerate as media owners focus on tapping into new audiences and the advertisers trying to reach them.

SMI’s figures show upfront spend

down in the mid-single digit range from this time last year, and while the scatter market is relatively strong, it is not yet making up for those lost upfront dollars. In January, the scatter market grew a healthy 39%, an upswing that helped the cable sector deliver 5% growth from the same period last year. The gain was primarily driven by ESPN, which grew 29% year-on-year, thanks to the ratings bonanza they experienced for the first ever college football playoffs. The biggest spender in scatter was the automotive sector, with advertisers spending over four times more than they did in January last year. Other key categories driving the scatter market were toys and telecommunications, both more than tripling their advertising spend.

On the broadcast TV front, things have not been too rosy. Overall, the sector fell 6% from the same period last year. Hispanic broadcasters bucked this trend, with Telemundo performing strongly and Univision also posting a solid increase on its 2014 numbers.