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June 28, 2011 @ 1:00 AM
WildBlue
Cord-cutting Trend? Not so fast.

"Cable TV never stood a chance," says a review of OrbTV - a(nother) device that enables users to shoot internet content to their TVs and theoretically expedites the number of cable subs chomping at the... cord. However, ABI Research says the cord-cutting trend hasn't generated the momentum many expected and, more importantly, pay-TV operators need to embrace consumer electronics' adoration with online video.

In its "Technology Barometer: Digital Living" study, ABI says the pay-TV package "is still the best means to get the widest range of content." And while changes to consumer behavior are occurring (i.e. consumers with connected devices watching upwards of 8 hours of programming per week), the data also suggests that now is the time for pay-TV providers to exploit their own innovation.

The report says with the connected CE space so young, "now is the time for pay-TV operators to act. Netflix and YouTube are the clear consumer favorites for online video, while the divide is even greater for social networking where Facebook captures 97% of social networkers on CE devices." In addition, the penetration rate of key connected CE devices such as TVs is currently low, ABI says, meaning there is room for competition and growth. "Cord cutting has not occurred at the rate some had previously thought... but the threat still exists," the report says.
MediaCensus RealNumbers: Sporting ... or Not?

Today we're gonna talk sports. More specifically Golf Channel, ESPN2, ESPN Classic, Outdoor Channel, Sportsman Channel, Tennis Channel and Versus. (They're all represented here but we're not going to tell you who's who on the chart ... and they're not in alphabetical order either. So you're going to have to guess all on your own.)

The object here is to demonstrate that not all sports networks are created equal.  With sports packages adding another $10+ to a monthly bill which many consumers consider to be too high already, the goal for any network is to get in the lowest level, least expensive, most highly distributed package available.  That's the goal, but what's reality?  How are networks packaged across providers and markets?  Is there a way to find out many subs are in each of those packages as well? 

Yes, Virginia ... we have an app for that.

Using our handy Network Packaging product, the latest cool tool from MediaCensus (a part of The Morning BRIDGE parent MediaBiz), we took a look at the seven sports channels listed above across the top 14 MVPD universe. We asked what percentage of subscribers for each of these is on an MVPD "Sports" package ... and what percentage might be anything other than a Sports package (noted on the chart as "Other").  What we discovered is that most of these well known sports channels are NOT getting the majority of their subscribers from a special Sports tier.  In fact, some sports networks get hardly any subscribers from a Sports tier.  Even though most MVPD have Sports tiers, the MVPD would rather encourage the consumer to buy a bigger package than to just add a single tier.  AT&T U-verse, for example, bundles the sports package networks (along with the rest of the kitchen sink) into the U450, their top-of-the-line offer, so many of the subscribers to sports networks are coming from the U450.  This is good for AT&T and is most likely good for the networks as well.

For a free report showing penetration rates of Sports Packages for the top providers in the top DMAs, OR for more information, contact Robert Lehmann at lehmannr@mediabiz.com.•
ETC: Supreme Court v. FCC - White Space Tests - NBC's D'oh!
Regulatory: The US Supreme Court said it will take up a First Amendment case to decide if the FCC's indecency rulings (and enforcement thereof) are unconstitutional. --- Citing over-regulation's stifling affect on small business, Rep. Robert Latta (R-Ohio) introduced a bill requiring the FCC to conduct a cost-benefit analysis of any proposed rule changes. --- The Hawaiian Dept. of Commerce and Consumer Affairs granted Hawaiian Telcom's application for a cable TV franchise license to offer video service over its phone lines in competition with Time Warner Oceanic Cable.

Technology: A group of UK broadcasters (BskyB, the British Broadcasting Corp. and BT Group) is teaming up with Microsoft to demonstrate how unused white space frequencies will best serve high-speed mobile internet services. According to the group, the tests will include streaming high-quality video from the BBC to mobile devices.

Distribution: SBJ reports the NFL is talking about a new eight-game, Thursday night, first-half-of-the-season package for TV nets valued at roughly $700M per year.

Online: HBO's mobile HBO Go app recorded its 3 millionth download in just under three weeks of operation. --- Multiple reports say Hulu has reached tentative deals with Disney and News Corp. for premium content as it looks to secure a top-dollar bid from potential acquirers.

Programming: XM is moving Cinemagic (movie soundtrack channel) off its playlist on July 1 but will continue its full-time availability as part of SIRIUS XM Internet Radio and mobile apps. Also, XM's flagship interview program Reel Time featuring movie-industry interviews is moving to SiriusXM Stars Too on both XM and on Sirius.

D'oh!: NBC introduced a new iPad app to users as a companion to its online destination NBC.com. The only problem? No access to full-length episodes of NBC shows.
 
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