TVB: Cable Penetration Down, Satellite Delivery Up
Feeding the theory of cable-cutting, a new study notes that cable system video services continue to drop among U.S. TV homes.
A new survey by the TVB, the TV marketing group, coupled with analysis from Nielsen Media Research, says U.S. TV consumer homes were down to a 60.7% penetration rate in November 2010 versus a 61.7% number in November 2009. It notes that this was the lowest number since November 1989, when cable system household penetration was at 59.7%.
The survey also says that alternative delivery video systems -- satellite and telco -- achieved another record, now at 30.5% of U.S. TV households in November. That is up 29.3% versus November 2009.
"In fact, in 34 markets, a majority of those paying for video programming are now getting that programming via ADS rather than from a wired-cable system," stated Susan Cuccinello, senior vice president of TVB research.
Albuquerque-Santa Fe has one of the highest penetrations of non-cable services for a top 50 market, with a 44.6% share going to alternative systems and 39.4% going to cable.
Pushing for its TV station members versus local cable systems, the TVB frames the issue around advertising: "Advertisers that buy cable locally need to know that local wired cable systems' ability to deliver commercials continues to erode."