Cord-cutting pace quickens | Media Analysis | Business
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The dumping over the last 12 months of multichannel video programming distributors’ offers has ‘meaningfully’ accelerated, says analyst Moffet Nathanson.

NOW TV 30 JUne 2016Having gathered data from all the major pay-TV companies in the country, the analyst reports that business as defined by traditional providers ended 2016 shrinking at 1.7% per year, its fastest rate of decline ever. Moreover, the rate of acceleration in the final quarter of the year was the fastest quarterly acceleration on record. This does not even take into consideration the effect in the year of over-the-top-delivered virtual MVPD bundles like Sling TV and DirecTV Now which prompted the rise in cord-cutting. The recently announced YouTube TV will likely muddy the water further.

The rate of decline from the perspective of the giant media companies was much gentler, and was about flat compared to last quarter. However, Moffet Nathanson found that individual media companies, and individual networks, were seeing larger declines, since the complete portfolio of channels is often not included in all of the various VMVPD packages.

Fundamentally the analyst expressed concern for the industry as consumption patterns shift from traditional live and broadcast to on-demand driven by the low pricing of the skinny bundles. This, it predicts, will lead to a haves and have-not’s demarcation. The former will be owners of live, scaled sports, news and events programming, while the latter will predominantly offer repeat and low-intensity content.

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