In this video game console generation so far, Sony has sold some 10 million units of its PlayStation 4 since November. A study has found that 31% of PS4 owners did not own Sony's previous console, the PlayStation 3, but did own an Xbox 360 or Wii; 17% of PS4 owners did not own any last-generation console. Source: CNBC, Nielsen  8/22/14.

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.




© 2013 PK Worldmedia, Inc.   All rights reserved.

S&P 500 Closes Above 2,000; Best Buy Tumbles After         Poor Q2 Results

 

By Catherine Hertzberg 
- August 26, 2014
 

  The S&P 500 gained 2 pts. to close barely above 2,000 for the first time, after reaching an intraday record high of 2,005.04. The Dow added 30 pts. to close at 17,107. The Dow also hit an all-time intraday high of 17,153.80.

  Best Buy dropped 7% in 7x avg. trading after posting disappointing Q2 results. Revenue of $8.9 bil. missed expectations and was down from $9.3 bil. in Q2 2013. BBY also forecast lower same-store sales for the second half of the year.

   Amazon rose 3% in light trading. It announced the acquisition of Twitch, a feed for live video-game broadcasts, which is expected to help it compete with Netflix and Hulu.

   Digital Life, up 14% YTD, is at a new all-time high of 548.21.

   LIN Media slipped 3% on heavier-than-avg. volume after Evercore Partners downgraded it from overweight to equal weight.

 

 Indices  8/26  8/27  %YTD 
 Video Gaming 12.63 12.65 37.8 
 Home Video 259.10 256.85 22.9 
 Internet Content 57.90 57.90 22.6 
 Fiber Optics 2.50 2.55 20.3 
 Consumer Elec. 82.71 83.29 19.1 
 Towers 336.04 337.03 18.9 
 Satellite TV 73.93 74.51 17.2 
 DJ Utilities 552.68 557.13 13.6 
 Digital Life 548.21 545.57 13.5 
 NASDAQ 100 4,071.67 4,073.18 13.4 
 Telco 42.31 42.62 13.4 
 NASDAQ 4,570.64 4,569.62 9.4 
 S&P 500 2,000.02 2,000.12 8.2 
 Cable MSO 69.37 69.67 7.2 
 Movie Theaters 13.99 14.01 6.0 
 Internet Media 129.65 128.61 4.5 
 Publishing 80.09 79.26 4.4 
 Wireless Tech. 13.37 13.33 4.0 
 3D 33.92 33.98 3.7 
 Social Media 119.89 119.40 3.6 
 Dow Jones Avg. 17,106.70 17,122.01 3.3 
 Broadband Tech. 21.07 20.92 3.1 
 Motion Pictures 37.41 37.52 1.1 
 Russell 2000 1,175.17 1,172.71 0.8 
 Global Cable 117.24 118.90 (0.6) 
 Advertising 96.87 97.83 (3.5) 
 Global Wireless 86.02 87.28 (3.6) 
 Television 104.48 105.17 (7.4) 
 Wireless Prov. 27.41 27.54 (10.0) 
 Radio 16.17 16.24 (13.8) 
 Interactive TV 21.07 21.06 (14.6) 
 Satellite Networks 52.59 52.72 (16.1) 
 © 2012 PK Worldmedia, Inc. All rights reserved.