Tuesday, April 3, 2012


From TheWrap.com

Netflix and Hulu are convincing millions of cable subscribers to cut the cord and dive into video streaming. 

That's the conclusion of a new report released this week by the Convergence Consulting Group, which finds that 2.65 million Americans canceled cable between 2008-2011 in favor of lower-cost internet subscription services or video platforms.

The Canadian research firm estimates that 112,000 U.S. and Canadian subscribers were added to the cable rolls in 2011. That represents a more than 50 percent drop from the 272,000 who signed up for the service in 2010. 

On top of that news comes this from DHD

Moguls will need a stiff drink nearby when they read Morgan Stanley analyst Benjamin Swinburne’s bracing report today about the state of the home video business — and Hollywood studios. He says that film operations at Universal, Disney, Paramount, Fox, and Warner Bros are worth about $19.3B, down from $40.2B in 2007. And a big reason for the 52% drop is that studios’ annual home video profits from each TV household fell to $100 last year from $127 in 2007 — and will continue to slide to $93 in 2015.
Meanwhile, DVD sales are falling much faster than Blu-ray disc sales are growing. And overseas opportunities aren’t sufficient to change the story given “lower studio settlement rates for international box office, a minor international home video market and rising film costs.”
It is going to get worse before it gets better. 


  1. Well Kevin, I think in many aspects, you are right; however, the studios aren’t going to sit idly and let that happen either. The way they are kicking it to Netflix, Hulu and the rest in fees shows they are wising up. Pay TV will keep looking better to people in the long run, which is the conclusion of Convergence. Although I work for DISH, I know that since I got the Hopper whole-home DVR my sense of value in the service has increased tenfold. Between the four major networks automatically recording primetime on one tuner and the Blockbuster @Home subscription with streaming that I have on the Hopper, I am up to my eyeballs in stuff to watch. Improvements in the benefits pay TV companies give has slowed the cord cutting.

  2. Hi Gman,

    As gas prices rise (along with core inflation) and the economy remains stagnant I believe cord cutting will continue. Yes it may slow but it wont stop and that is the key.


  3. Thanks for sharing. I have had Comcast Cable in Baltimore, MD for the past years and have been meaning to cut the cord in hopes to save a little. I am just concerned that after all is said and done I won't even be saving that much. I agree with you, slowly but surely people all over the US will cut the cord as they have been driving less with the increasing gas prices.