Savvy users have been cord-cutting or cord-shaving for many years. New data shows why they stream and what they stream -- TV shows and movies. This is not good news for pay-tv or premium cable companies.
Transcript of "Hiding the Cord Cutting Truth Augustine Fou 2014"
Augustine Fou- 1 -
Digital Video Power
Users Dr. Augustine Fou
acfou @mktsci .com
Augustine Fou- 2 -
“The data in slide 3 shows cable companies
losing 3% of their subscribers, most of whom
went to ‘telephone companies.’ It is somewhat
misleading to quote the 0.1% change. While
users have not cut the cord, their consumption is
entirely different when they stream video content
rather than watch linear TV on broadcast or
Augustine Fou- 15 -
Use Netflix vs Pay-TV
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YouTube and Facebook
Video is Getting Large Enough
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It turns out that cord-cutting isn’t the only threat facing cable channels.
Several of the big ad-supported online video outlets, including Google Inc’s
YouTube, AOL and others, plan this upfront season to target some of the ad
dollars that currently flow to cable channels, industry executives say.
The web video outlets see a vulnerability in second tier cable networks, and to a
lesser extend in the local TV-station market, executives say.
According to multiple media buyers and ad sellers in the Web video industry,
digital media companies are looking to draw direct comparisons between their
audiences and cable TV networks, a match-up Web video outlets think they can
Buyers say Google is likely to be the most aggressive on this front, given
YouTube’s massive size and its young demographics that don’t necessarily
watch a lot of TV. The company has been selling directly against cable
networks, with pitches like “X YouTube net reaches more women than E! or
Awesomeness TV reaches more tweens than ABC Family.”
In one pitch, for instance, YouTube cited Nielsen data from November showing
that it reached 49% of all 18 to 34 year olds, versus 45% for FX, 44% for TBS’
comedies, 41% for Comedy Central and 40% for AMC.
YouTube also thinks it can capture more local broadcast and cable ad dollars
from national advertisers looking to boost spending in certain markets. The
company is targeting automotive and wireless advertisers in particularly, said
executives with direct knowledge of YouTube’s plans.
Loss of Ad Dollars to YouTube
Don’t forget about
Facebook video ads
which debut at $1 -
$2.5 million a day.
Insider, March 2014
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Dr. Augustine Fou – Digital Consigliere
“I advise clients on optimizing
advertising across all channels. When
users are moving away from traditional
TV viewing, advertisers need to find new
ways of reaching them and attracting
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
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