networks are fighting cord cutters the exact wrong way
TRANSCRIPT
Networks Are Fighting
Cord CuttersThe ExactWrong Way
The Motley Fool
Image source: Flickr/Alan Kilm
The Pay-TV industry lostapproximately subscribers last quarter.
566,000
Source: Reuters/MoffettNathanson
ESPNNickelodeonTNTTBSA+E
Down 7.2%Subscriber numbers since 2011
Down 6.9%Down 6.1%Down 5.7%Down 5.2%
Source: Wall Street Journal
As a result, prominentcable networks are losingsubscribers as well.
Walt Disneyreported adsales at ESPN
during thesecond quarter.
Dropped 3%
Image Source: Flickr/USAG-HumphreysSource: Disney
Ad sales at Viacom
last quarter.Dropped 9%
Image Source: NickelodeonSource: Viacom
AMC also saw amaterial decreasein ad revenue.
Source: AMC NetworksImage Source: AMC Networks
To counteractthe decline,networkshave taken to
ad stuffing
Image Source: Flickr/Michael
Ad StuffingThe act of extendingcommercial breaks to squeezemore ads in per TV episode.Can also involve speeding upepisodes to include morecommercial time.
verb
AMC's ad load
last quarter.grew 10%
Source: Sanford Bernstein/AdAgeImage Source: AMC Networks
Nearly every other networkgroup increased ad load as well.
ViacomA+ETime WarnerDisney
Up 7%Up 5%
Up 4%Up 3%
Source: Sanford Bernstein/AdAge
But this solution is only afix for theand
short-termunsustainable.
Not only is there a limitto the number of adsnetworks can stuff into atime-slot
ads ads ads adsads ads ads adsads ads ads adsads ads ads adsads ads ads ads
Showing more commercialsonly drives viewers toseek commercial-freealternatives like ...
Showing more commercialsonly drives viewers toseek commercial-freealternatives like ...
Streaming videoservices.
Long-term this strategyonlythe core problem ofdeclining ratings.
exacerbates
Image Source: Netflix
Until management offersamany of these networkswill continue to seead revenue andsubscriptions suffer.
real solution
3 Companies Poised to When Cable Dies
ExplodeCable is dying. And there are 3 stocks that arepoised to explode when this faltering $2.2 trillionindustry finally bites the dust. Just like newspaperpublishers, telephone utilities, stockbrokers,record companies, bookstores, travel agencies,and big box retailers did when the Internet sweptaway their business models.And when cable falters, you don't want to missout on these 3 companies that are positioned tobenefit. Click here for their names.Hint: They're not the ones you'd think!