Content Fragmentation Means More Cable Cutting

Forget about moving TV’s from room to room, – when I was a kid there were only 3 networks and a couple of independents.  As a result, I am now compelled to have as many possible channel choices and I can the theme to Gilligan’s Island is forever stamped in my brain because it was on almost as many stations as It’s a Wonderful Life. But all the content that is available today is starting to dig into cable’s customer base. New research is out that shows consumers are leaving cable and watching OTT (over the Top) content (such as Netflix, Hulu, YouTube  and Apple TV.).

cutting-cable-tv• 60% of consumers are cable subscribers, 18% identified themselves as never subscribing to cable

• 22% of consumers do not currently subscribe, but used to

• 44% of consumers have at least one TV connected to the internet, that’s up 16% from last year

• Currently, one-third of consumers are watching OTT content daily – nearly double last year’s total

• Nearly 60% watch OTT content weekly – that’s up over 40% from last year

• Over one in five consumers stream Netflix content on a weekly basis

What Does This Mean To You?

Advertising on cable may seem like a bargain – spots are not that expensive and content on some cable outlets is getting better.   But remember, you get what you pay for.  The cable universe is vast and because there are so many channels – many deliver little, if any, audience return.
Add to that the number of consumers leaving cable because the content they want – movies and unique programming is rapidly becoming available through other platforms such as Netflix and Apple TV.  If you are going to advertise on cable, do your homework.  Negotiate your rates on a cpm basis for the channels your spots will be appearing on. Make sure those channels meet your targeting requirements.  Many times you may get a few spots in popular shows only to have the bulk be plopped onto channels with very little viewership.  To get the ROI your business deserves – require the cable buy to post (you require them to give you an estimated ratings performance and if the campaign doesn’t not meet their estimate, you get spots to make good the lost ratings points).  Also make them post on the performance of their cable system – not overall cable.  For more information on effectively and efficiently reaching your target markets, please call:
Al Fiala
amfiala@gmail.com

Source: eMarketer; AYTM; Liechtman Research Group

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