To Cord-Cut or Not To Cord-Cut

The concept of cord cutting isn't new, but the latest attempt to quantify how many consumers are choosing OTT services suggests the trend is real. A new study says that streaming services like Netflix and Hulu are, in fact, convincing millions of pay-TV subscribers to cut their cable (and satellite) 'cords' and embrace internet-delivered video.

According to Convergence Consulting Group, 2.65M Americans between 2008-2011 canceled their pay TV subscriptions in favor of those offered from internet streaming services. The Canadian research firm calculates that 112K video subscribers in the U.S. signed up for a pay TV service in 2011, down more than 50% from the 272K who subscribed to cable or satellite in 2010.

And, depending on whose numbers are used, the drop could be even greater. In a separate report, Leichtman Research says the top 14 MVPD operators (collectively reaching ~94% of all U.S. pay TV HHs) added 380K subscriptions in 2011... about 175K fewer than it added in 2010.

The report, dubbed "The Battle for the North American Couch Potato," says OTT services are not only responsible for the declines, but consumers' will embrace internet services at an accelerated pace this year. The firm says by the end of 2012, as many as 3.58M consumers will cut their cord.

In related news, Barclays Capital's Anthony DiClemente, downgraded Netflix to a 'hold' rating Wednesday saying the company's competition is heating up. The analyst said Amazon now has 1/2 as many titles (and could be as high as 3/4 by the end of the year), while Comcast's Streampix could create the streaming blueprint for all MSOs. Further, DiClemente said, take the loss of Starz and the fact that Netflix only has access to about 20% of box office titles (as compared to 48% in 2011) and you've got cause for concern. •

Analyst: Is News Corp. 'Cheap'?

Despite News Corp. making daily headlines (recently more for its phone-hacking scandal than anything else), investors still look at the stock and wonder... is it a good deal? It depends, says Bernstein Research's Todd Juenger, on how the company handles its business.

According to Juenger's latest examination of News, the company's future depends more on its success as an investor that as an operator. He said while the research firm expects continued growth from the company's cable nets, that growth will likely not be enough (on its own) to drive an attractive upside to the stock.

"We don't predict large increases at the studio/TV stations/broadcast network/satellite, but even if we did, it wouldn't move the needle," Juenger said. "Even in optimistic scenarios, which we question due to audience erosion at FNC and cost pressures at FX, this segment alone is not enough to power the stock."

Bernstein rates the stock at 'market perform' with a target price of $21.•

Etc.: FreePress: 'Block' Verizon/Cable Deal - PS3 Adds Amazon Prime - Comcast NOT Worst Company!

Retrans: Tribune and DIRECTV kissed (sort of) and made up putting 23 stations in 19 markets plus WGN America back on the satcaster last night.

Op/Ed: "Competition in the U.S broadband market is virtually nonexistent," says Free Press Director Josh Levy. "That means millions of Americans live without high-speed internet access, and those who do have it experience slower speeds and higher prices than their European counterparts." The solution? Says he: "...block Verizon's proposed deal" with cable.

OTT: Sony's PlayStation3 (PS3) added Amazon's Instant app to its suite of streaming video services.

WebTV: Google's YouTube struck a movie-rental deal with Paramount Pictures, adding 500 new titles to its expanding online library. YouTube's library now sits at nearly 9K titles. --- Myspace said it will 'serialize' its music interview show "One-Two-Watch" featuring intimate conversations with new and upcoming musical artists. --- GetReal USA says it is in late discussions about launching a new "streaming broadcast TV network." Details were virtually non-existent, but you can read about the company, here. --- Yahoo! said it will renew seven of eight web series aimed at women viewers.

Branding: Discovery said it will rename Planet Green as Destination America beginning May 28.

Research: Parks Associates says 42% of U.S. consumers with a media tablet use the device to check TV listings while watching TV.

Programming: As part of separate agreements with YES Network and SNY, Verizon said FiOS subs can now access Yankees and Mets games (in HD) on the FiOS1 Local Zone section of the free VOD service. --- VH1's "Rock Docs" program will explore the 20th anniversary of the L.A. riots with "Uprising: Hip Hop and the L.A. Riots" on May 1 at 9pm ET. --- Kinetic Content picked up the U.S. rights to "MY Kitchen Rules," a popular home-cooking battle show from Australia.

Tech: Wanna see something cool? Check out the vid Google produced to tease its new smart-glasses thing.

Advertising: DIRECTV's at it again... Check out the next batch of the satcaster's "Get rid of Cable" campaign, here. Funny stuff.

Labor: AT&T workers in its SW region voted to ratify a four-year agreement with the Communications Workers of America covering ~8,800 members. --- Disney's games group Disney Interactive Media laid off 10 employees after reporting a $28M loss this quarter.

Over, Up, & Under: The UK began its digital transition in London this week. The two-phase switchover is scheduled to be complete on April 18. --- Discovery Networks EMIA signed a mobile TV agreement with Russia's Mobile TeleSystems for the Discovery Channel, TLC, and Animal Planet. --- Spanish communications regulator CMT said pay-TV revenues in Spain increased 7.5% y/y in Q411, while total subs grew by ~110K. The agency said IPTV services showed the most growth during the period at ~30K net adds. --- BlinkBox inked a deal with Disney UK that will allow subs to purchase streaming titles the same day they're released on DVD.

People: First Lady Michelle Obama will appear as a guest on Comedy Central's "The Colbert Report" on Wednesday, April 11. --- The NCTA announced NBCU president of TV networks distribution Bridget Baker, and Suddenlink's CEO Jerry Kent, are the 2012 recipients of the cable industry’s top honor, the Vanguard Award for "Distinguished Leadership." Here's the full list of winners.

Awards: CNN, Al Jazeera English, and NPR all received recognition for the 71st Annual Peabody Awards. Check out the entire list of winners.

Whew!: Comcast lost out in the 3rd round this year ... and ultimately toasted the "winner" of The Consumerist's "Worst Company in America 2012" competition (so to speak) which is (drum roll please) ... Electronic Arts.  EA "beat out" Bank of America, AT&T, Comcast, Best Buy and Sony. Comcast "conquered" Time Warner Cable and DIRECTV on its way to the 3rd round loss.

--- Catch today's media market news in The Evening BRIDGE. •

ADVERTORIAL: Register Today for the Cable Hall of Fame Celebration

Make your plans now for the Cable Hall of Fame Celebration, in conjunction with The Cable Show, on May 21 at the Marriott at Copley Place in Boston.  

Join The Cable Center as we welcome the Cable Hall of Fame Class of 2012:  

•    Ann Rallis Carlsen, Founder and CEO, Carlsen Resources, Inc.
•    Leo Hindery, Jr., Managing Partner, InterMedia Partners  
•    Larry King
•    Debra L. Lee, Chairman and CEO, BET Networks
•    H.F. (Gerry) Lenfest, President and CEO, The Lenfest Group
•    Phil Lind, Vice Chairman, Rogers Communications Inc.

The Cable Center will also honor Alan Gerry, chairman and CEO of Granite Associates L.P., and chairman of the Gerry Foundation, as the 2012 Bresnan Ethics in Business Award recipient during the Cable Hall of Fame Celebration.  The Bresnan Ethics in Business award honors the late William J. Bresnan, founder and chairman of Bresnan Communications and long-time chairman of the board of The Cable Center, and recognizes outstanding men and women in the cable industry who best exemplify Bill Bresnan's longstanding commitment to ethics in business.
 
Plus, join Cable Hall of Fame sponsors Rogers Communications, Viacom, and BET Networks and get valuable exposure in front of some of the industry’s biggest names.  Learn more about Cable Hall of Fame sponsorship today at http://sponsorship.cablehalloffame.com or by contacting Lela Cocoros, 303-871-2798, lcocoros@cablecenter.org.  

Register today for the Cable Hall of Fame Celebration!  Online registration is now available at www.cablehalloffame.com. •