Cable's 'TV Everwhere' Could Lock Out 7.7M Online Viewers

A new report from media researcher Interpret indicates that if cable operators are successful with their “TV Everywhere” push, it could leave 7.7 million viewers unable to access TV programs online.

TV Everywhere is an initiative under way by Time Warner (TWC) and Comcast (CMCSA) to make cable TV content available across all devices to cable subscribers. If successful, it could potentially allow cable subscribers to access their favorite cable content on other devices, but it would also require that they are cable customers in order to view the content

Currently, the cable operators are saying they will make the content available to subscribers online, at no charge, but some in the industry predict there will eventually be a charge for the content.

This could be potentially problematic, Interpret said, since 11% of all US active streamers of video, or 7.7 million, do not subscribe to cable or satellite. Those viewers would be unable to access content online without subscribing to such a service, writes MediaBuyerPlanner.

The group most affected would be those in the lower average-income bracket, and especially adults in the 18-34 demographic, many of whom stream video online rather than pay for cable or satellite service.

The average income of all age groups that only stream video online, rather than watching television, is $42,314, compared with the $60,054 average income of those who both stream video and subscribe to a cable or satellite service.

Other findings from the report:

• 12% of males 18-24 only stream video online (rather than subscribing to a cable or satellite service).
• 14% of males 25-34 only stream video online.
• 11% of females 18-24 only stream video online.
• 15% of females 25-34 only stream video online.

Interpret also points out that in addition to potentially losing 7.7 million viewers, another problem for TV Everywhere is that those behind the initiative expect to significantly increase the commercial load within TV shows shown online. Now, shows online include anywhere from a single 20-second ad break to three or four 30-second spots, but TV Everywhere could potentially boost the number of commercial minutes per hour of television to 18.

Comments

[a. palmer jr.:]

They can't leave anything alone, can they? This is all out greed and nothing more. If my personal economy gets worse the subscription to pay tv is going to be the first thing to go. They're charging us huge amounts to show us basically reruns and commercials anyway. When we first signed up part of the idea of cable or satellite tv was to get away from commercials. Now they're as bad as free tv.

Nov 01 08:39 AM

[dmz50:]

You can always get the basic packages cheap!

Nov 01 12:43 PM

[olebearded1:]

First off "Interpret" is all wrong with their figures. For those that make 42 thou. a year and stream video and not cable is WRONG. Don't know how they got their figures but they are incorrect. I don't know of anyone or don't even know anyone that knows anyone that has only streaming video. I agree with Palmer in the sense that the Economy will force me to abandon cable. Who do you think is streaming video now? People that abandoned cable. Thats who. People figured out that with streaming internet and using their flatscreens as moniters they could cheat the cable companies out of cable fees and just have broadband. They have already lost the 7.7 million viewers. THEY WANT THEM BACK!

Nov 01 09:26 PM

[joe zyzyx:]

Comcast lied, told customers they'd suffer no problems in the digital changeover, then they moved so many channels to digital later that basic cable became a bad joke of very few channels. I've switched to another provider because of that. Cheap cable? I was paying almost $19 in the end for about 15 channels, plus some govt channels. Now Comcast bought out Fancast and planning to takeover HULU.

Nov 02 02:27 AM

[MattG:]

It is simple economics. In an economic down turn there is less money in advertising. For any provider to balance it's books the viewer must then pick up the tab. The first to go is free curtsey service. For all of you that think you are owed free tv, I suggest you move back in with you parents.

Nov 02 11:46 AM