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CableTechTalk

Technology & Telecommunications Policy Discussion

The Big Shift, Maybe Not So BigFebruary 5

Regular readers will note that I keep returning back to the issue of cord-cutting, mostly because I keep reading articles and blog posts about how it’s the big new trend.

It’s not a question of whether more television content will move to the Internet or whether IP transport will be used more in the future for video distribution. It’s two questions:

a) Are a lot of people canceling their cable subscriptions for cord-cutting alternatives?

b) Can you replace your cable subscription through online video?

In a previous post I attempted to answer these questions, but it’s quite simple: a) No. b) No.

This debate does show that consumers have more choices than ever before, which one would hope can finally put to an end to the view that insufficient competition exists. I might argue that cable subscriptions provide the best combination of services and value, but those who don’t agree clearly have many other options.

This week also brought two new pieces of evidence which tend to support the subscription model, one scientific in nature and one anecdotal.

Parks Associates released the All Eyes on Video study, which looks at “consumer use of and interest in video experiences.” From

Saving a Bundle on Voice, Video & DataFebruary 3

In the new issue of Consumer Reports, the cover story is their annual look at TV, phone and Internet service (Here’s a news article about it.). Their description of cable’s position in the marketplace is perhaps the most positive that I’ve seen in CR’s coverage, but I do have a few nits to pick with the article.

The good news is that some cable operators receive high marks from consumers about the service they receive. While some cable companies are not viewed positively, there seems to be a general air against incumbents. In other words, when it comes to video service, the incumbent cable providers are not viewed as positively as newer competitors; however, when it comes to telephone service, cable is viewed more positively than traditional phone providers.

In addition, Consumer Reports’ reader survey points out something that’s been known for some time: Customers who take bundled service are happier with their provider. Since cable first rolled out Internet access and then telephone service – as well as services such as DVRs, HD and digital cable – we have seen the take rates increase dramatically for the new services. Consumers are getting more out of their cable subscriptions, and by bundling Internet access and phone with their video service, they’ve als

Lessons from Vegas: The Realities of Online VideoJanuary 22

At the recent CES conference, there was much discussion of 3-D TV, mobile devices and tablet PCs. But there was also a great deal of talk about the future of television and about alternatives means of delivering entertainment and information to consumers.

On this blog, I have many times written about so-called “cord cutters” – people who have canceled their cable subscription in order receive movies and television shows over the Internet. CES was filled with talk of Netflix’s deal with Warner Bros, the Boxee box, the introduction of VUDU Apps, and more. Sessions with titles like Rethinking the Future of Creative Works and Defining Internet TV focused on emerging models for the distribution of content.

What struck me at CES – as I have also been reading in the blogosphere and the mainstream press for over a year – is that we’re moving away from the current model, where 85% of U.S. households get video through a Multichannel Video Distributor, to a new disintermediated world, where you’ll get content over the Internet directly from content creators. To hear some talk about it, the current model is a dinosaur and the sooner that the cable industry can figure that out and move on, the better.

But let’s

McSlarrow Statement on TV EverywhereJanuary 4

Free Press’s description of TV Everywhere is a reminder of the admonition that people are entitled to their own opinions, but not their own set of facts.  The call for an “investigation” of TV Everywhere has no factual or legal basis, no matter how many times Free Press and its allies repeat the words “collusion,” “cartel” and “illegal.”  In the name of protecting competition, they would actually reduce the amount of online content available to consumers.

For those unfamiliar with TV Everywhere, it is just one of several concepts, based on different technologies and business models, being developed for the online video marketplace.  TV Everywhere, specifically, would provide a new service at no extra charge to consumers who subscribe to a multichannel video programming service – whether provided by cable, satellite or telephone companies:  the ability to watch TV programs on PCs or laptops, and potentially other Internet-connected devices.  It could significantly increase the amount of high-value video content available online – something the FCC has said would help drive broadband adoption.

But Free Press’ theory seems to be that TV Everywhere poses a threat “to kill” online video competition because it would only be available to cable and other pay TV subscribers.  But they get it exactly backwards:  It is an effort to ensure more content than ever is distributed over the Internet at no extra charge t

Cutting Yourself Off From CableDecember 11 2009

One of the big stories in tech reporting over the past year or so has been the move by some consumers to “cut the cord” from their subscription TV service and begin relying on the Internet for the delivery of video content.  I catch up on a lot of shows myself by watching them online and this is definitely a convenient service.

While cord-cutting is definitely a trend that the entire media industry is watching, many of the articles and blog posts covering this say something like: “Tired of paying so much for cable? Cancel your subscription and turn to the Internet to serve your needs!” The direct implication of this is that you can get all the stuff you currently watch on cable television – or via DBS (DirecTV & DISH) or from the phone companies (AT&T’s U-verse & Verizon’s FiOS) – just by going online.

But all this coverage ignores the fact that you can’t do this. You can get some cable programming online, but not most of it.

Let’s focus in on a couple key elements.

From an October 29 article in the Washington Post:

[Cord-cutting] was a somewhat easy thing for us to do. We don’t watch that much TV in the first place, and most of what we do view is on the [over-the-air broadcast] networks anyway…

If you look at