Cord cutting and cord shifting to virtual MVPDs will continue this year, but the price advantage vMVPDs enjoyed has eroded significantly, nScreenMedia analyst Colin Dixon blogged Monday. "Big bundle" vMVPDs like YouTube TV, Hulu Live and fuboTV now cost $65 monthly and could cost more than $70 by year's end, he said. He said the vMVPD industry will likely add 1.5 million new subscribers this year, with cheaper services like Sling TV and Philo gaining share as pay TV likely loses 5 million to 6 million subs.
MVPDs lost 7.2 million subscribers last year, reported Kagan Monday, saying virtual MVPD services “blunted the overall erosion” of consumers with a package of live linear channels, but the 2.7 million new vMVPD subscribers fell far short of offsetting cable, telco and satellite cancellations. MVPD losses slowed in Q4 to 1.5 million, but the full-year decline “underscored that the impacts of the pandemic amplified cord cutting instead of insulating an industry built around home entertainment.” For Q4, the vMVPD segment didn’t hold its momentum, gaining 223,000 subscribers to finish the year with 12.5 million. Some 6.8 million households cut the cord last year, said analyst Tony Lenoir. Fewer than 67% of U.S. households have a traditional pay-TV or vMVPD service with a package of live, linear channels, Kagan said, and fewer than 57% subscribe to traditional pay TV.
Fox News, MSNBC, CNN and ESPN were exempted from the FCC's audio description rules applicable to the top five national nonbroadcast networks (see 2011020043) because they provide less than 50 hours per quarter of prime-time programming that's not live or near-live, per a docket 11-43 Media Bureau order Monday. It said with the granted exemptions, the new list of top five national nonbroadcast networks subject to the audio description requirements will be TLC, HGTV, Hallmark, History and TBS.
ViacomCBS launched its “reimagined” streaming service, Paramount+, Thursday, replacing CBS AllAccess. Consumers can subscribe directly. The $9.99 monthly premium tier has live sports, breaking news and commercial-free, on-demand entertainment including exclusive content and library shows and music with 4K, HDR and Dolby Vision, plus mobile downloads, said ViacomCBS. The ad-supported $5.99 tier, including live CBS programming, is available until June, when new subscribers will be offered an ad-free version for $4.99 minus the live local CBS programming. Viacom CBS told existing subscribers they will be automatically rolled over to Paramount+, and the limited-commercials plan will be discontinued later this year, replaced by the $4.99 service. CBS Sports touted the launch. Roku announced the service, hoping to steer its customers to Paramount+ through its platform. Sixteen original series will be offered this year, said ViacomCBS.
Comcast's peak downstream internet traffic grew 38% last year from 2019 levels, while peak upstream traffic jumped 56%, said the company Tuesday. In the four months spanning lockdowns, Comcast's network had almost two years of traffic growth, it said. Despite a rise in videoconferencing, entertainment dominated network traffic, with video streaming generating 71% of downstream traffic, 70% higher than 2019 levels. Online gaming and related software downloads (10%) and web browsing (8%) were primary drivers of downstream traffic, vs. 5% for videoconferencing. Comcast customers generated more than 1 trillion internet requests daily last year, it said.
Charter Communications will continue in the cable TV business, though its video offerings will go beyond that, CEO Tom Rutledge said at a Morgan Stanley investor conference Tuesday. He said live TV being sold in a linear package will continue "for a significant period," though it's becoming less affordable and streaming products are gaining market traction. He said Charter will sell streaming packages alongside its existing video products. Though TV “is becoming a broadband product,” Charter will have cable TV service “for years," he said. Asked about competition from 5G fixed wireless as that service comes to market, he said 5G "would take an enormous amount of capital" to serve as a substitute for cable broadband and it's "not likely to be deployed rapidly." He said Charter's internet-only customers use around 700 GB monthly, while wireless-only averages around 10-12 GB, so 5G "is not a full replacement for where we're going."
Altice expects to close its $310 million Morris Broadband buy in Q2, expanding its North Carolina presence, the cable ISP said Monday. Altice CEO Dexter Goei said this fits into Altice's strategy of upgrading underdeveloped systems and using fiber-to-the-home deployment to drive growth. Altice has been on the hunt for rural assets to diversify away from the New York market, and Morris' relatively low penetration leaves room for growth, emailed MoffettNathanson analyst Craig Moffett. "It illustrates strong demand for rural broadband assets."
Cable One's financial, technical and managerial resources would enhance Hargray's ability to compete in the telecom market, the cable operator said in an FCC International Bureau application Friday seeking OK of its $2.2 billion purchase of the telecom services provider (see 2102160014). Cable One said the deal will be seamless to customers, with existing Hargray customers still getting service under the Hargray name and all billing and correspondence reflecting the Hargray name for the immediate future.
Medicom opposed a West Des Moines motion to dismiss the company’s lawsuit claiming the city violated Iowa law when it used bonds for urban blight and poverty to build a $50 million municipal network for Google Fiber (see 2012100030). “A city council may choose to disregard statutes, work behind closed doors, and deprive voters of a voice in the city’s financial decisions,” Mediacom said Thursday at the Iowa District Court for Polk County. “But if a council makes that choice, no mere use of magic words or motion practice ... can dissolve the state judiciary’s authority and obligation to independently review the council’s conduct.”
Mediacom ended 2020 with 1.44 million broadband customers, up 110,000; 643,000 video customers, a 67,000 drop; and 586,000 phone customers, down 27,000, said Q4's announcement Thursday. Revenue for the year rose 4.9% to $2.13 billion.