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Home / Articles / Blog / Is online video distribution impacting cable subscription numbers?
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24
January
2012

Is online video distribution impacting cable subscription numbers?

While it’s tempting to attribute these losses as an indication that online video or “over-the-top” or “OTT” video distributors are finally poised to take significant market share away from traditional MVPDs, the Kagan report points to a weak economy with high unemployment as the primary drivers.

However, other studies and media articles suggest that online video distribution may be contributing to cable’s subscriber losses.

For example, there is an often-cited study by Strategy Analytics which shows that 13% of Americans surveyed plan to cut their cable within the next 12 months. According to this study, these demographic pockets are young, educated and affluent – in other words, those people most likely to get their video fix from a laptop or mobile device in lieu of the living room television set. (Coincidently, we can assume that a large portion of this demographic are MDU or condominium residents.)

If online video distributors threaten traditional cable and satellite MVPDs (to the extent that traditional providers are pushing various “TV Everywhere” platforms in an attempt to control the evolution of online video distribution), they do it without any assistance from regulators, Congress or the courts.

See my article, “No Online Cable System – for Now,” and my new (brief) follow-up, “Still No Online Cable System – Sky Angel vs. Discovery Channel,” soon to be posted in the Articles section of this website.

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