cord-cutting in focus OTT: a catalyst for ‘cord-cutting’?
As the strength of the online TV community increases, surely more traditional methods of consuming video content will suffer? Subscriptions to cable and satellite payTV services would appear to be under threat from so-called ‘cord-cutters’ - but is this scenario real, or just the product of media hype? This issue of IBE considers this question as part of it’s overview of the content distribution market. In his excellent examination of the OTT market (page 8 of this issue) Chris Forrester finds evidence that the ‘cord-cutting’ phenomenon may well
exist...and is gathering pace. He said: “A new Harris Interactive Poll found some compelling evidence [of cord-cutting] in the USA, where one in five Americans - 22% - cancelled or reduced their cable TV subscriptions in the six months to mid-2010. And another 21% considered giving their cable companies the axe. It seems the percentages are pretty consistent. The percentage of US consumers who say they've cut back or eliminated cable was 22% in February 2010 and 21% in October 2009.”
If this scenario is played out across the globe it will have a major impact on traditional broadcast revenue streams and, presumably, the relationship between broadcasters and their colleagues at YouTube, iTunes, Google TV and the like. In fact, in an attempt to avoid being painted as some sort of cord-cutting monster, Google TV has been quick to dismiss any connection between OTT and the cord-cutting trend. Google TV product lead Rishi Chandra, speaking at a recent conference, said: “Our point of view is that cord-cutting is not happening. We think the cable industry does a pretty good job of delivering content to users, so we don’t think that all of a sudden users are going to shut off all that content.” No matter what the statistics imply or how opinions may differ, there certainly seems to be a trend: the second quarter of 2010 saw the first ever net loss of customers for the pay TV industry as a whole. Clearly, the traditional broadcast sector cannot afford to ignore this shift in viewing behaviour, and where better to arm itself with the technology and processes to make theirs the compelling viewing option than at the NAB Show 2011? The exhibition throws open its doors on 11 April in Las Vegas for four days of business. I, for one, will be there. And I won’t be the only one looking for answers to the question ‘what next for the broadcast industry?’ One thing’s for sure, though - the pace of change is showing no sign of slowing down. I look forward to seeing you in Vegas.
Neil Nixon Editor IBE
Editor Neil Nixon E:
nnixon@btconnect.com T: +44 (0)1409 241166 Consultant Editor Robert Taffurelli Contributors Joe O’Halloran & Chris Forrester Publisher/Sales Clare Sturzaker E:
csturzaker@bpl-business.com T: +44 (0)1342 717459 Sales Lynn Neil E:
lneil@bpl-business.com T: +44 (0)208 123 5040 Production Tracy Foley E:
tfoley@whitewatergfx.co.uk T:0845 299 8596 Chairman Chris Boeree E:
chris@bpl-business.com T: +44 (0)1895 421111
www.ibeweb.com
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www.ibeweb.com l march/april 2011 l ibe l 5
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