Univision acquired The Root, the leading online news, opinion and culture destination for African-Americans, reaches average of 5 mil. unique users per month. Terms of deal not disclosed. African-American and Hispanic purchasing power combined is $2.3 trillion, together, they make up 22% of the electorate. Univision Comm., Marketwatch.com, 5/22/2015

Satellite-Cable-Telco Subscribers
Company/Industry 2009 2010 2011 2012 1 yr. 3 yr.
(millions of subs)         Sub. Change
Comcast 23.559 22.790 22.331 21.995 -336 k -1,564 k
DirecTV 18.125 18.837 19.532 19.764 232 k 1,639 k
Dish 14.100 14.133 13.967 14.056 89 k -44 k
Time Warner Cable 12.859 12.422 12.061 12.218 157 k -641 k
Cox 6.200 6.150 6.090 6.000 -90 k -200 k
AT&T 2.500 3.373 4.144 4.856 712 k 2,356 k
Verizon 2.750 3.472 4.173 4.726 553 k 1,976 k
Charter Cable 4.824 4.520 4.314 4.158 -156 k -666 k
Cablevision 3.063 3.314 3.250 3.197 -53 k 134 k
Totals 87.980 89.011 89.862 90.970 1,108 k 2,990 k
Cable TV (5 MSOs) 50.505 49.196 48.046 47.568 -478 k -2,937 k
Satellite 32.225 32.970 33.499 33.820 321 k 1,595 k
Telco 5.250 6.845 8.317 9.582 1,265 k 4,332 k

Is Cord-Cutting A Myth? Do The Math!

By Paul Kagan - April 23, 2013

The popular image of "cord-cutting" - movement of interest from cable TV to online viewing--has been misread from the beginning. Reports of cable TV subscriber losses miss the fact that satellite and telephone companies built their own "cords." So, despite the advent of Netflix, Hulu, YouTube and other online providers, over the last three years (2010-2012) cable, satellite & phone operators - each of them "cords" with monthly contract fees - added a total of 3 mil. net new subscribers (see table above).

Concerns that a shift from TV to the internet have put incumbent carriers on a downward - perhaps fatal - path are way over the top (pun intended). Print critics in newspapers, magazines and online (veteran cynics of wired TV) have conjured a mass movement to online video, an opinion that helps them promote their own ventures.

As the table above shows, the nine largest "cords" (cable, satellite and telephone providers) - had 91 mil. subscribers at year-end 2012, up 3 mil. from 2009, when cord-jumping fever settled in. The biggest gainers on the list were AT&T (+2.36 mil.), Verizon (+1.98 mil.) and DirecTV (+1.64 mil.). And in 2012 alone, the big telcos added 1.265 mil. subs, Satellite gained only 321K and cable gave up 478K. (Note: for this analysis, I used data from only the five largest cable MSOs. But research indicates similar percentage performance deeper into the list.

The data above are not my estimates; they were reported by the companies. It's clear that, despite populist fears of cord-cutting, the nine largest video distributors signed a net new 3 mil. subscribers over the last three years while pundits accused them of losing audience to internet video newcomers. The new online networks surely are building their own followings, but they have a long way to go to be full competitors.

One of the biggest obstacles for the newbies is their own chronology. People aged 20-35 today - the primary cord-cutters--will lead different lives as they mature, when work and family responsibilities will have greatly changed. The economics of time and taste will find big screens on walls everywhere, and family viewing may well have a renaissance. Indeed, Google Fiber - for one - is counting on it. The search giant is planning to overbuild the nation with a gigabyte network designed to compete head-on with its cable/telco predecessors, while bowing to the needs of this generation's heavy downloaders.

Google clearly got the idea from the original cable guys, whose revenue comes primarily from video content but whose profit depends largely on similar access to the internet. Let the upgrading begin.




© 2014 PK Worldmedia, Inc.   All rights reserved.

Stocks Fall on Yellen Remarks; Time Warner Cable in Talks   With Altice, Charter

 
By Catherine Hertzberg - May 22, 2015
 

  Stocks fell after Fed Chair Janet Yellen said that interest rates would rise this year if the economy continued to improve. The Dow dropped 54 pts. to close at 18,232. The S&P slipped 5 pts. to 2,126.

  Time Warner Cable reached an all-time high of $172.21 before closing up 6% on 2x avg. volume. It is in talks with both Charter Comm. and Altice for a potential sale, worth as much as $54 bil. CHTR was down 2%.

  Cable MSOs, up 6% YTD, are down <1% from their all-time high of 77.08, set April 10.

  Lions Gate gained 5% in 2x avg. trading It reported Q4 net income of $181.8 mil. vs. $152.0 mil. a year ago.

  Liberty Global hit an all-time high of $58.21 before closing up 2% on twice avg. volume.

  The top five PK averages for the week are: Global Cable +10.1%, Publishing +7.7%, Cable MSO +2.8%, Television +2.7%, and Internet Content +2.0%.

 Indices  5/21  5/22  %YTD 
 Home Video 336.30 336.01 67.9 
 Publishing 112.80 112.57 20.8 
 Video Gaming 16.85 16.79 19.8 
 Internet Content 72.62 72.56 19.7 
 Digital Life 594.28 593.23 18.1 
 3D 39.78 39.70 15.2 
 Global Cable 151.53 153.56 12.9 
 Movie Theaters 15.94 15.89 12.2 
 Global Wireless 82.64 82.96 11.3 
 Wireless Prov. 29.68 29.57 10.4 
 Broadband Tech. 23.59 23.46 10.3 
 Television 120.84 120.76 10.0 
 Advertising 108.39 107.59 9.1 
 Wireless Tech. 13.75 13.72 8.7 
 Internet Media 129.40 128.90 7.7 
 NASDAQ 5,090.79 5,089.36 7.5 
 NASDAQ 100 4,529.47 4,527.16 6.9 
 Cable MSO 76.33 76.76 6.2 
 Fiber Optics 3.01 3.01 6.2 
 Consumer Elec. 95.39 95.40 6.2 
 Motion Pictures 40.54 40.65 6.0 
 Russell 2000 1,256.74 1,252.22 3.9 
 S&P 500 2,130.82 2,126.06 3.3 
 Dow Jones Avg. 18,285.74 18,232.02 2.3 
 Telco 41.34 40.95 0.8 
 Radio 16.25 16.17 0.8 
 Satellite TV 79.71 79.52 0.7 
 Towers 337.49 337.82 0.5 
 Satellite Networks 48.71 48.52 (3.9) 
 DJ Utilities 589.22 588.13 (4.8) 
 Interactive TV 17.59 17.67 (5.3) 
 Social Media 107.95 107.75 (10.0) 
 © 2014 PK Worldmedia, Inc. All rights reserved.