Your favorite niche, small cable network could be feeling lots of entropy -- ups and down.
First the bad news. Pivotal Research says many mid-to-small size networks are taking a severe hit in
terms of lower subscribers for Nielsen’s March cable universe estimates.
For example, Discovery’s American Heroes Channel is down 5.9%; Discovery Family Channel, losing 6.4%; Time
Warner’s Boomerang, slipping 7.5%; Viacom’s CMT, off 9.8%; and Viacom’s Spike, sinking 7.2%.
All these are worse than the individual cable network median -- down 2.3%.
Overall pay TV basic cable homes shrank 2.0% versus a year ago.
Now to be fair, Nielsen results don’t include growing upside -- albeit small -- from new virtual digital pay TV providers,
like Sling TV, Sony Playstation Vue, DirecTV Now, and others.
That said, many of these networks probably wouldn’t necessarily make the cut on many 40 channel skinny TV bundles. For the
most part, many of these OTT providers typically focus on top viewing broadcast and cable networks.
Pivotal also says established sports cable networks -- channels that a significant chunk of
U.S. TV consumers may want to leave behind -- are also getting hurt. Pivotal says ESPN2 and ESPN each were down more than the industry average -- 3.6%.
Now, the good news: Some fringe
networks are going into the other direction, showing improvement. Notable ones included AMC’s Sundance, 10.5% higher; BBC America, 3.4% more; CBS’ Smithsonian, adding 5.4%;
Discovery’s Velocity, up 6.3%; and Fox’s FXX, higher by 7.5%.
We say “some” because among 117 measured networks this year and last, only 27 showed some subscriber
growth.
Overall, AMC Networks, Crown Media and Univision are the only TV network groups to see growth in subscribers -- up 2%, 1%, and 0.9%, respectively. Looking at the bigger TV networks
groups, Fox did the best, slipping just 0.6% in March.
Some silver lining here. There has been a rise -- albeit small -- in the growth of new TV homes overall -- 1.7%. New non-traditional pay
TV services like Sling TV, Sony Playstation Vue, DirecTV Now -- and forthcoming from Hulu and YouTube TV -- might sense this is an area in which they could gain.
Does that give some of these
niche channels a chance ? Sure. But consumers might have to pay a bit more for this. The bottom line? Some savings for sure; but still many OTT/pay TV questions about the future.