Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


TDG Opinion: Pay-TV Households Have Peaked

~~~~~

Pay-TV Households Have Peaked and Are Set to Decline thru 2017

Michael Greeson, Founding Partner ~~~~~

January 10, 2013 Now here's a forecast that might wake you up...at least in time for the fireworks. According to new forecasts from TDG, the number of US households that subscribe to traditional cable-like pay-TV peaked in the last two years and is projected to decline from nearly 101 million in 2012 to less than 95 million in 2017. TDG strongly believes that the number of pay-TV subscribers will undergo a noticeable decline in the next few years. Of course, any decent forecast has a long list of stipulations, a few of which are listed below. Let's be clear:

* This forecast assumes that pay-TV operators forgo à la carte during the stated period, which is a relatively safe assumption. Should MVPDs embrace a la carte, the forecast could change dramatically. I happen to believe that operators will not wake up to the fact that the market demands à la carte - at least not in time to avoid the decline illustrated above.

* American operators should have learned from Canadians five years ago (as we noted at that time). Though hesitant to offer anything close to a true à la carte package, many Canadian operators introduced "modified" à la carte offerings. Why? Not out of the goodness of their heart, but because "the local markets demanded it," and because it was a "compromise" needed to retain subscribers. But let's not get carried away: the loss of six million subs in the next five years is hardly the end of the world for traditional pay-TV. My question is whether it constitutes a paradigm shift - a tipping point in the evolution of home television and video viewing in general - or just a short-term blip on the radar. I tend to think it's a tipping point, a structural shift will long-term tectonic implications.

ENDS


© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Houses (& Tobacco) Lead Inflation: CPI Up 0.3% In March Quarter

The consumers price index (CPI) rose 0.3 percent in the March 2014 quarter, Statistics New Zealand said today. Higher tobacco and housing prices were partly countered by seasonally cheaper international air fares, vegetables, and package holidays. More>>

ALSO:

Notoriously Reliable Predictions: Budget To Show Rise In Full-Time Income To 2018: English

This year’s Budget will forecast wage increases through to 2018 amounting to a $10,500 a year increase in average full time earnings over six years to $62,200 a year, says Finance Minister Bill English in a speech urging voters not to “put all of this at risk” by changing the government. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news