174 million people in the U.S. owned smartphones during a three-month period ending in September 2014 representing 72% mobile market penetration, with ownership being up 1% since June 2014. Apple ranked as the top OEM of smartphones in the period with 41.7% of U.S. smartphone subscribers. Source: comScore 11/7/14.

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.




© 2014 PK Worldmedia, Inc.   All rights reserved.

Dow, S&P 500 at Record Closes; Best Buy Q3 Income up 98%

 

By Catherine Hertzberg
- November 20, 2014
 

   Stocks rose Thursday on strong economic data. The Dow gained 33 pts., closing at a record 17,719. The S&P 500 gained 4 pts. to 2,049, also a record high close.

   Activision jumped 8% in 3x avg. trading. Its "Call of Duty" game franchise has sold >$10 bil. to date.

  Video Gaming, up 48% YTD, is at an all-time high of 13.57.

  Best Buy was up 6% on 4x avg. volume. It posted Q3 net income of $107 mil. vs. $54 mil. a year ago.

  Intel reached a 52-week high of $35.97 before closing up 5% in twice avg. trading. It forecast 2015 revenue growth above analyst estimates and raised its dividend from 90 cents per share to 96 cents.

 

 Indices  11/19  11/20  %YTD 
 Video Gaming 13.37 13.57 47.8 
 Consumer Elec. 89.28 90.45 29.4 
 Fiber Optics 2.72 2.73 28.9 
 Internet Content 60.03 59.76 26.5 
 Satellite TV 80.09 78.92 24.1 
 Towers 344.79 347.17 22.5 
 Publishing 92.40 92.13 21.4 
 DJ Utilities 595.03 593.79 21.0 
 NASDAQ 100 4,222.66 4,242.09 18.1 
 Telco 42.87 42.64 13.4 
 NASDAQ 4,675.71 4,701.87 12.6 
 S&P 500 2,048.72 2,052.75 11.1 
 Digital Life 517.32 519.03 8.0 
 Cable MSO 69.84 69.83 7.5 
 Dow Jones Avg. 17,685.73 17,719.00 6.9 
 Movie Theaters 14.14 14.12 6.8 
 Global Cable 126.32 125.70 5.0 
 3D 34.19 34.08 4.1 
 Broadband Tech. 20.96 21.03 3.6 
 Social Media 117.15 118.17 2.6 
 Russell 2000 1,157.69 1,170.75 0.6 
 Motion Pictures 37.24 37.22 0.3 
 Wireless Tech. 12.64 12.74 (0.5) 
 Home Video 204.41 207.44 (0.8) 
 Internet Media 120.84 120.85 (1.8) 
 Advertising 95.95 96.08 (5.2) 
 Global Wireless 81.46 81.71 (9.8) 
 Television 102.01 102.24 (10.0) 
 Wireless Prov. 27.17 27.29 (10.8) 
 Radio 15.08 15.14 (19.7) 
 Satellite Networks 49.42 49.96 (20.5) 
 Interactive TV 19.36 19.47 (21.0) 
 © 2014 PK Worldmedia, Inc. All rights reserved.