Cable TV subscription bundles (and the large monthly bills that accompany them) are on the decline in the United States. The main proponent of this decline has been “cord-cutting” or the replacement of a traditional cable provider with à la carte TV or streaming-based television services.
Cord-cutting services aim to solve the widespread problem for consumers who pay for hundreds of channels, but actually watch only a small portion of them.
A la carte TV is becoming increasingly popular and services like Amazon ($AMZN), Netflix ($NFLX) and Hulu now provide subscribers with full access to TV and movie catalogs. Larger corporations and media outlets have already adapted for cord cutters: CBS ($CBS) offers a streaming service, HBO ($TWX) NOW allows live streaming of their content and the NFL has just released an all access pass to stream any NFL game immediately after its conclusion.
Recent statistics underscore the magnitude of the impact that cord-cutters are having on the traditional cable business. The growth in cord-cutting had caused 1.4 million U.S. households to either cancel or opt out of pay TV in 2014. This number is only accelerating with an estimated 566,000 cutting the cord in the second quarter of 2015 alone.
Using AlphaSense, we can answer the following questions: What companies are affected by this (negatively or positively)? How are they positioning themselves for the future? Interestingly, the answers to these questions are overwhelmingly located in conference call transcripts rather than documents (filings, investor presentations or press releases) released directly by the corporations.
Not surprisingly, many of the conversations surrounding cord-cutting for cable provider firms have been negative as cable providers come under fire by sell-side analysts during conference call Q&A sessions.
Here are a few notable examples of the responses companies have been providing on the topic:
Media Asset Owners
Related Technology & Services
A search for “cord cutting” OR “cord shaving” across all document types including transcripts, press releases, filings and investor relations presentations on AlphaSense returned results in 2 seconds. My saved searches automatically notify me via email as soon as any other documents are filed that match my search criteria. No other service allows you to conduct research as quickly, easily and as thoroughly as AlphaSense.
1. “NFL Game Pass gives cord-cutters a new option.” cnbc.com.
2. “Cord-cutting accelerates in first 3 months of 2015.” USA Today.
3. “Cord-Cutting Picks Up: 1.4 Million U.S. Households Tuned Out Pay TV in 2014.” Variety.com.
4. “Cord-Cutting Gets Ugly: U.S. Pay-TV Sector Drops 566,000 Customers in Q2.” Variety.com.